• The IMF has revised the global growth forecast for 2021
• This is due to supply chain disruptions as a result of COVID-19
• The pandemic has adversely shattered international and domestic markets
The International Monetary Fund has trimmed down growth outlooks for the major industrial nations, Reuters has reported.
The IMF in its latest World Economic Outlook report cut growth forecasts from a 6.0 percent to 5.9 percent for 2021.
It explained the move was attributed to the persistent disruptions in the global supply chain and inflation pressures constraining the global economy’s recovery from the impacts COVID-19 pandemic.
“This modest headline revision, however, masks large downgrades for some countries and the worsening pandemic dynamics have darkened the outlook for low-income developing economies, while wealthy countries are struggling with supply disruptions.”
Gita Gopinath, IMF’s chief economist said the Fund growing more concerned about persistent inflation risks to recovery and called on central banks to act precisely.
“Central banks should be prepared to act quickly if the risks of rising inflation expectations become more material in this uncharted recovery.”
Meanwhile, the IMF has kept the 2022 global growth forecast unchanged at 4.9 percent.