That latest IMF forecast was an upward revision from its previous projection made in June. Investors have also turned more optimistic in recent weeks following progress made on the Covid vaccine front. The U.K. on Tuesday became the first country to start vaccinating the public outside of trial conditions. But before the economic benefits of vaccines are felt, a “deterioration” in the Covid situation in Europe and the U.S. would weigh down the economy, said Diokno. Some Asian countries such as Japan and South Korea are also experiencing a resurgence in cases, he noted.
Globally, there have been more than 68 million reported Covid-19 infections and over 1.5 million deaths, according to data compiled by Johns Hopkins University. The U.S., India and Brazil are the three countries with the most reported cases and deaths, the data showed.
Nevertheless, the availability of vaccines would lift global economic prospects beyond the first quarter of next year, said the governor. He added that China — which appears to be among the earliest to contain the coronavirus — will help Asia to lead the global economic recovery. “With the vaccine or vaccines, I think the outlook for 2021 — the full year of 2021 — and 2022 are quite bright,” he said.