The International Monetary Fund (IMF) raised its UAE and global economic growth predictions for 2021 on Tuesday, citing major vaccination campaigns and a $1.9 trillion US stimulus package as factors that would help the rebound in the second quarter of this year.

In its current World Economic Outlook report, published on Tuesday, the IMF Fund increased the UAE's growth forecast for 2021 from 1.3 % 2020 to 3.1 % The UAE's growth is expected to slow to 2.6% next year, according to the fund’s Fund.

The IMF attributed the strengthened outlook of the UAE and the global economy to the acceptance of several Covidd-19 vaccines that can reduce the frequency of infections. After Israel, the UAE is now the world's second most vaccinated nation.

The IMF raised its growth forecast for the Middle East and Central Asia region to 3.7 % in 2021, up from 3.0 % previously. The Fund raised its growth forecast for the Middle East and North Africa region from 3.2 % to 4.0 % for 2021.

The global economy is expected to rebound faster this year and next, according to the IMF.

“In comparison to our previous projections, we now expect a stronger turnaround in the global economy in 2021 and 2022, with growth of 6% in 2021 and 4.4 %, in 2022. Nevertheless, the forecast faces significant challenges due to deviations in the rate of recovery, according to IMF chief economist Gita Gopinath.

In its previous forecast, published in October 2020, the Fund predicted 5.2 % growth for the global economy in 2021.

“We have several vaccines that can minimize the seriousness and incidence of infections thanks to the scientific community's resourcefulness,” Gopinath said.

The US is predicted to reach its pre-Covid GDP level this year, while many other major economies will not return to pre-Covid levels until 2022. China had already returned to pre-Covid-19 GDP in 2020 among emerging market and developed economies, while many are not projected to do that until 2023.