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CLICK TO ENLARGEThe better outlook prompted Schroders to upgrade its world GDP forecast for 2021 to 5.3% from its earlier forecast of 5.2%.
For 2022, the fund management company expects world GDP to expand 4.6% from its earlier forecast of 4.1%.
It expects the US economy to expand 4.7% this year and 4.9% next year, backed by the country’s US$1.9 trillion stimulus plan. This compared with its earlier GDP growth forecast of 3.8% and 3.5% for 2021 and 2022, respectively.
Meanwhile, Schroders cut its 2021 GDP growth forecast for Europe, citing longer lockdowns amid the Covid-19 pandemic and the region’s slow start to vaccinations.
Its revised 2021 GDP growth forecast for Europe stood at 3.6%, compared with 5% previously, while that for 2022 stood at 4.8%, compared with 4.1% previously.