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IMF Lowers 2021 GDP Growth Forecast to 5.9%, 2022 at 4.9%
15th October 2021 | Hong Kong
The International Monetary Fund (IMF) has lowered the global growth projection for 2021 to 5.9% from 6%, and 2022 growth forecast at 4.9%.Gita Gopinath, Economic Counsellor and Director of the Research Department at the International Monetary Fund in the briefing, highlighted risks to economic prospects have increased and policy trade-offs have become more complex in the ongoing Covid-19 pandemic, adding “One of the major risks remains that there could be new variants of the virus that could further slow back the recovery. We’re seeing major supply disruptions around the world that are also feeding inflationary pressures.”
“ IMF Lowers 2021 GDP Growth Forecast to 5.9%, 2022 at 4.9% “
Gita Gopinath, Economic Counsellor and Director of the Research Department at the International Monetary Fund:
“The global recovery continues, but momentum has weakened, hobbled by the pandemic. We have a slight downward revision for global growth for this year to 5.9 percent for next year, our projection remains unchanged at 4.9 percent. The divergences in growth prospects across countries, however, persist and remains a major concern.
One of the major risks remains that there could be new variants of the virus that could further slow back the recovery. We’re seeing major supply disruptions around the world that are also feeding inflationary pressures, which are quite high and financial risk taking also is increasing, which poses an additional risk to the outlook.
The foremost priority is to vaccinate the world. Much greater multilateral action is needed to vaccinate at least 40 percent of the population in every country by the end of this year and 70 percent by the middle of next year. We also need much greater action to address climate change. Individual countries will need to tailor their fiscal and monetary policy to the country’s specific conditions, to the health conditions in their country, to their economic conditions, while also maintaining the credibility of their fiscal and monetary frameworks”
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