A market in Chennai, India (Photo: AFP/VNA)

The IMF said in an update to its World Economic Outlook that it expects the US economy to grow 7% in 2021, possibly the fastest in the world because of its ambitious spending plans and effective vaccination rollout.

Renewed waves of COVID-19 infections have led to a downgrade for India to 9.5%. The IMF gave China a growth forecast of 8%. The outlook for the UK was marked up to 7%, lower than that of Mexico under the influence of the US’s economic rebound. The IMF also reported an increase in commodity prices in Brazil.

According to the IMF, the uneven progress of vaccination campaigns is making a major difference in economic recovery between rich nations and the developing world. The Fund also warned of possible new coronavirus variants that may once again cast a shadow over the global economy.