Global GDP will grow the most since 1980 this year amid vaccination and stimulus, Fitch says

WASHINGTON - The world economy is set to thrive through 2021 as vaccinations and a new swath of fiscal support bring countries back to pre-pandemic norms, Fitch economists said.

The team led by Brian Coulton lifted their estimates for economic growth in a note, joining several other firms in preparing for a strong recovery.

Global gross domestic product is now expected to grow 6.1 percent through 2021, up from the previous estimate of 5.3 percent. The new forecast calls for the fastest rate of global growth since at least 1980 and follows a 3.4 percent decline in 2020.

Global GDP will grow 3.9 percent in 2022, the team added. That estimate is little changed from Fitch's December forecasts.

The US economy is expected to slightly outperform the rest of the world and grow 6.2 percent this year, the firm said. That's up from a previous estimate of 4.5 percent expansion. US GDP is now projected to reach its pre-pandemic highs by the end of the second quarter, three months earlier than Fitch last forecasted.

The $1.9 trillion stimulus measure signed by President

Joe Biden last week drove the bulk of Fitch's revisions. The package is "much larger than expected" and, when joined with new relief plans in the EU and India, should contribute to the global recovery, the economists said.

Vaccine rollouts are also grounds for optimism, they added. The US is administering roughly 2.5 million vaccinations each day on average, according to Bloomberg data.