Despite the recent spike is COVID cases, new lockdowns and travel bans, the IMF’s (International Monetary Fund) newly released 2021–22 global outlook is surprisingly optimistic.The fund expects growth in the United States to be a full two points higher than previously projected at 5.1 percent, its strongest rate since 1984, while the IMF forecasts China growing 8.8 percent.Its optimism is based on the new vaccines, which they expect will bring the pandemic under control, and stimulus in major economies that will boost growth."These developments indicate a stronger starting point for the 2021–22 global outlook," the IMF said in its latest World Economic Outlook (WEO).After sinking 3.5% in 2020, the worst year since World War II, the global economy will grow 5.5% this year, the 190-country lending organization predicted. The new figure for 2021 is an upgrade from the 5.2% expansion the IMF forecast in October and would mark the fastest year of global growth since the 2010 snapback from the financial crisis, according to Nikkei Asia. Potential ProblemsHowever, the IMF warned that the outlook is beset by "extraordinary uncertainty" and more action is needed to prevent lasting damage."Much depends on the outcome of this race between a mutating virus and vaccines and the ability of policies to provide effective support until the pandemic ends," IMF chief economist Gita Gopinath said at a press briefing on January 26.Regional ForecastThe Euro zone nations will collectively register 4.2% growth this year after seeing economic output fall 7.2% in 2020, the IMF says. Separately, Christine Lagarde, president of the European Central Bank, said Europe’s economic recovery had been ‘delayed, but not derailed’ as she stressed the need for governments to pour on fiscal stimulus to ward off the impact of Covid.Japan is forecast to grow 3.1%, after a 5.1% decline in 2020.The Indian economy is forecast to expand 11.5% in 2021, rebounding from a decline of 8% last year.The IMF forecasts global trade to grow 8.1% growth after falling 9.6% last year.Long Term DamagesAt the same time, it said that the global economy is set to lose over $22 trillion between 2020 and 2025 due to the pandemic. The losses include the global economic decline in 2020, as well as future economic growth that is lower than it might have been without the pandemic.The Coronavirus has killed over 2 million people and seen nearly 99 million confirmed infections across the globe. Countries are currently rushing to roll out vaccination programs, while experts say that the global inoculation process could extend well into 2022, DW news reported.