After a challenging 2020, prospects for the global economy have improved this year as pandemic headwinds begin to fade and financial conditions remain broadly accommodative across mature and emerging market economies. The global economy is expected to rebound by 5.8% in 2021, following a sharp contraction of3.3% in 2020. However, the economic recovery remains highly uneven, amid significant uncertainty about the path of the pandemic in many parts of the world. These factors continue to weigh on the outlook for capital flows to emerging markets.
