Real GDP grows when the quantities of labour, physical capital and human capital grow and
when technology advances. As per the WEO (2021), global growth is projected at an estimated
5.5 percent in 2021 and 4.2 percent in 2022. This is happening within a very uncertain
environment as the global economy contracted by 3.5 percent in 2020. However, in 2019,
global growth was 2.8% and growth in the U.S in 2019 was 2.3%.
Using data from the Conference Board, work out the yearly growth accounting equations for
the period 2000 to 2019 for a) the U.S and b) a country of your choice. Discuss the drivers of
growth for the U.S over this 19-year period and provide a short comparison to the drivers of
growth for the country chosen for
08:06 0 2 4LTE1 .Ill Vo)) WORLD ECONOMIC OUTLOOK wwl espanol francais EX. pycckun X World Economic Outlook Update January 2021 Policy Support and Vaccines Expected to Lift Activity Read full report PDF E Download the Data . Although recent vaccine approvals have raised hopes of a turnaround in the pandemic later this year, renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022. The 2021 forecast is revised up 0.3 percentage point relative to the previous forecast, reflecting expectations of aWorld Economic Outlook Update January 2021 Policy Support and Vaccines Expected to Lift Activity El Read full report PDF 55 Download the Data . Although recent vaccine approvals have raised hopes of a turnaround in the pandemic later this year, renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022. The 2021 forecast is revised up 0.3 percentage point relative to the previous forecast, reflecting expectations of a vaccinepowered strengthening of activity later in the year and additional policy support in a few large economies. . The projected growth recovery this year follows a severe collapse in 2020 that has had acute adverse impacts on women, youth, the poor, the informally employed, and those who work in contactintensive sectors. The global growth contraction for 2020 is estimated at 3.5 percent, 0.9 percentage point higher than projected in the previous forecast (reflecting stronger thanexpected momentum in the second half of 2020). . The strength of the recovery is projected to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support, exposure to cross country spillovers, and structural characteristics entering the crisis (Figure 1). Figure 1. Divergent Recoveries: WED Forecast for Advanced Economies and Emerging Market and Developing Economies (index, 2019:04 = 100) 08:06 P Q . 8 2 4LTE1 .Ill Figure 1. Divergent Recoveries: WEO Forecast for Advanced Economies and Emerging Market and Developing Economies (Index, 2019:Q4 = 100) China (Jan. 2021 WEO Update) ..*= China (Jan. 2020 WEO Update) - AEs (Jan. 2021 WEO Update .--=* AEs (Jan. 2020 WEO Update) EMDEs excluding China (Jan. 2021 EMDEs excluding China (Jan. 2020 WEO Update) WEO Update) 120- 115- 110- 105- 100..... 95 90- 85- 80 2019: 20: 20: 21: 21: 22: 22: Q4 Q2 04 02 04 02 04 Source: IMF staff estimates. Note: AEs = advanced economies; EMDEs = emerging market and developing economies; WEO = World Economic Outlook. . Policy actions should ensure effective support until the recovery is firmly underway, with an emphasis on advancing key imperatives of raising potential output. Policy actions should ensure effective support until the recovery is firmly underway, with an emphasis on advancing key imperatives of raising potential output, ensuring participatory growth that benefits all, and accelerating the transition to lower carbon dependence. As noted in the October 2020 World Economic Outlook (WEO), a green investment push coupled with initially moderate but steadily rising carbon prices would yield needed emissions reductions while supporting the recovery from the pandemic recession. Strong multilateral cooperation is required to bring the pandemic under control everywhere. Such efforts include bolstering funding for the COVAX facility to accelerate access to vaccines for all countries, ensuring universal distribution of vaccines, and w e panoemic I'ECeSSIOn. - Strong multilateral cooperation is required to bring the pandemic under control everywhere. Such efforts include bolstering funding for the COVAX facility to accelerate access to vaccines for all countries, ensuring universal distribution of vaccines, and facilitating access to therapeutics at affordable prices for all. Many countries, particularly lowincome developing economies, entered the crisis with high debt that is set to rise further during the pandemic. The global community will need to continue working closely to ensure adequate access to international liquidity for these countries. Where sovereign debt is unsustainable, eligible countries should work with creditors to restructure their debt under the Common Framework agreed by the (320
