Thank you very much.
Honourable members of the committee, I'm very pleased and honoured to be here today. My name is Agathe Demarais. I'm the global forecasting director at The Economist Intelligence Unit.
In January, we published a study presenting our forecasts for global coronavirus vaccination timelines around the world. I think this is the study that Lauren Ravon mentioned in her testimony. These projections presented the time when each country around the world can expect to have vaccinated 60% to 70% of its population.
There are three main conclusions that I'll present now before digging a little further into the data. The first conclusion is that vaccination will take a lot of time. Vaccinating the majority of the world's population will take until at least late 2022, and for many countries, the timelines will stretch until 2024 if vaccination happens at all.
The second conclusion is that production is the main bottleneck around the world. We studied seven criteria to make our timelines, and production was always the one that made timelines slip.
The third conclusion is that this poses two main risks. The first risk is for the global economic recovery because some countries will recover faster than others as they will have vaccinated faster than others. The second risk is obviously that while not every one is vaccinated, new variants of the coronavirus pandemic can emerge and could take us back to square one.
First, why did we do this study and what was our methodology? Until recently, the main variable for political and economic forecasts that we do at the EIU was the course of the pandemic. That's not the case anymore. Now it's all about global vaccination timelines.
What was our methodology? Briefly, we took seven factors into account. The first one was production. As I mentioned, it's the main bottleneck because 15% of the world's population have pre-booked around half of the supply of coronavirus vaccines that will be produced this year.
The second factor was supply deals.
The third factor was logistics with a special focus on two issues. The first issue was transportation, which is going to be very tricky because normally vaccines are shipped via passenger planes but there's no travel anymore because of travel restrictions. The second issue was the cold chain, because some countries do not have the required cold chain to use some of the vaccines that require ultra-low temperatures.
The fourth factor was the availability of health care personnel to administer the vaccines. This is going to be a bottleneck in some countries, for instance, in Asia.
The fifth factor was financing. It is crucial for many poorer countries.
The sixth factor was vaccine hesitancy, which is especially acute in some countries like France, Japan and Argentina.
Finally, there were some local factors because some countries simply do not want to vaccinate. This is the case in Tanzania, for instance.
The second thing that I wanted to mention is the main takeaways from our study. We mapped four different categories of countries. The first category is the fastest countries with timelines stretching into late 2021, so late this year. We have exceptionally fast countries such as Israel, the United Kingdom, Serbia and the Gulf countries, and other very fast countries in the EU, the U.S., Switzerland, Hong Kong and Singapore, for instance.
The second category of countries have timelines stretching into mid-2022. This is still very good by global standards. These are other OECD advanced countries such as Australia, Japan and South Korea, or middle-income countries that have production capacity such as Brazil, Russia and Mexico.
The third category of countries is where we found most middle-income countries, and India and China, with timelines stretching into late 2022.
Why are India and China taking until late 2022? It's because of the sheer size of their population, which is going to present a big challenge, and also because these countries are exporting vaccines in large quantities so they will find tensions between supplying their domestic markets and supplying exports.
Finally, the fourth and last category, where the majority of the world's population finds itself, is timelines stretching into 2023 and beyond, if vaccination even takes place. This is the rest of the world, mainly low-income countries. It includes most countries that will depend on COVAX, which will cover only 20% of the population of eligible countries with timelines that are non-binding and subject to change. There's a real risk in these countries that vaccination will not take place, because in some of these developing countries, governments could find that vaccination could be too costly or too difficult.
Finally, what does that mean for the global economic recovery, which is something that we forecast at the EIU? It will start from the third quarter of 2021, so the third quarter of this year, because that's the time when the U.S., Europe and many of the OECD countries will have vaccinated the bulk of their populations. China is the engine of global growth but vaccination timelines can stretch further because the pandemic is under control in China and so there is no real rush to vaccinate, which is quite different from the situation in many western countries.
That being said, the global economy will recover to pre-coronavirus GDP levels only in late 2021, so it will take time, and this forecast masks wide disparities. It's artificially boosted by China, where we forecast that growth will boom this year. For the U.S. and the EU, we will see a recovery to pre-coronavirus levels only in 2022 and in Japan in 2023. In emerging countries, timelines will be much slower for recovery, which reflects the slow vaccination timelines that we've just discussed and the lack of fiscal space to launch stimulus plans.
This poses two main risks, finally, for global economic recovery. The first one is that global vaccination timelines could slip even further, which would delay the recovery. The second one is, as I've mentioned, that, while not everyone is vaccinated, we could see new variants emerge that could prove resistant to vaccines.
Thank you very much for your attention and for having me today.