World economy risks diverging trends even as growth booms

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Staff Reporter
Islamabad

The world economy is on course for its fastest growth in more than a half century this year; however, differences and deficiencies could hold it back from attaining its pre-pandemic heights any time soon.

The US is leading the charge, pumping out trillions of dollars of budgetary stimulus and resuming its role as guardian of the global economy following President Joe Biden’s defeat of “America First” Pr

esident Donald Trump. Friday brought news of the biggest month for hiring since August.
China is doing its part too, building on its success in countering the coronavirus last year even as it starts to pull back on some of its economic aid.

Yet unlike in the aftermath of the 2008 financial crisis, the recovery looks lopsided, in part because the rollout of vaccines and fiscal support differ across borders.

Among the laggards are most emerging markets and the Euro area, where France and Italy have extended restrictions on activity to contain the virus.

“While the outlook has improved overall, prospects are diverging dangerously,” IMF Managing Director Kristalina Georgieva said last week. “Vaccines are not yet available to everyone and everywhere.