The International Monetary Fund expects the global economic recovery to continue despite the reduction in estimates
Mubasher: The International Monetary Fund said that the global economic recovery is still continuing, but its previous momentum has weakened, and the level of uncertainty has risen, at a time when the pandemic is witnessing a new wave of infection.
And he continued in the World Economic Outlook report issued today, Tuesday, that the cracks and negative effects caused by the Corona virus will continue for a longer period, and it is expected that short-term manifestations of divergence will leave lasting imprints on medium-term performance.
The Fund noted that access to vaccines and early policy support are the main drivers behind the gaps .
He expected the global economy to achieve a growth of 5.9% in 2021 and 4.9% in 2022, a decrease of 0.1 percentage point in 2021 compared to what was stated in the July 2021 forecasts.
The downgrading of the forecast for 2021 reflects the reduction related to advanced economies, which is due in part to disruptions in supply chains, and also to low-income developing countries, which is mostly due to the worsening pandemic.
This reduction is partially offset by improved short-term prospects in some commodity-exporting emerging market and developing economies.
Uncertainty about how quickly the pandemic can be overcome has increased due to the rapid spread of the delta strain and the risk of new mutated strains emerging, at a time when choosing between policy alternatives has become more difficult, given the limited scope for action.