IMF warns of growing threats to global economic recovery
News_Code: 355503 10/25/2021 11:43:32 AM
IMF warns of growing threats to global economic recovery
In its latest outlook report, the International Monetary Fund (IMF) warned that threats to the global economy recovering from last year's Corona pandemic were on the rise and that there was a "dangerous divergence" between rich and poor countries.
 

In its latest outlook report, the International Monetary Fund (IMF) warned that threats to the global economy recovering from last year's Corona pandemic were on the rise and that there was a "dangerous divergence" between rich and poor countries.

The fund changed its forecast for global growth this year, down 0.1 percent to 5.9 percent, while keeping its forecast for 2022 unchanged at 4.9 percent.

The International Monetary Fund (IMF) said the outlook for the developing and low-income groups had been "significantly darkened" by the worsening Corona pandemic, but that a slight change in the report's title would obscure major cuts for some countries.

Gita Gopinath, the chief economist at the International Monetary Fund, described the epidemic in a virtual news conference, saying that the lack of global supply in the face of growing demand is causing inflation in the prices of goods that are passed on to consumers.

"Food prices have risen the most in low-income countries where food insecurity is more acute than others, adding to the problems of poor families and increasing the risk of social unrest," she said.

Emerging and developing economies face more difficult financing conditions as debt level rises, inflation rises and their currencies weaken against the US dollar, forcing them to raise interest rates in a bid to curb inflation expectations.

Challenges such as rising food prices, food insecurity, and increased risk in financial markets have increased as the epidemic continues to affect the global community, Gopinath said.

"Therefore, the most important priority is to vaccinate at least 40 percent of the population of each country by the end of this year and 70 percent by the middle of next year," she said.