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IMF raises global economic forecast but warns of uneven recovery and daunting challenges

The International Monetary Fund raised its global economic forecast for the second time this year due to an acceleration in the Covid-19 vaccine rollout in tandem with fiscal and monetary support provided by governments and central banks. But it also warned of wider income gaps and an uneven recovery as richer countries rebound faster from the impact of the pandemic.

The global economy is now set to grow 6 per cent in 2021 compared with a previous 5.5 per cent forecast, the Washington-based lender said in its latest update to its World Economic Outlook on Tuesday. The upward revision follows a 3.3 per cent contraction in 2020 as the…

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