“The outlook for low-income developing countries has worsened significantly due to the deteriorating dynamics of the pandemic,” reports the fund’s report (Photo: Reuters/Kim Kyung-hoon)
The International Monetary Fund (IMF) said on Tuesday that persistent supply-chain problems and pricing pressures are hampering the global economic recovery, as it cuts growth prospects for the United States and other powers.
in your report global economic perspectiveThe IMF lowered its forecast for global growth in 2021 from 6% in July to 5.9% and kept the 2022 outlook at 4.9%.
“This small amendment, however, makes big cuts for some countries, the document reads. The shortage also reflects more difficult short-term prospects for a group of advanced economies, due to supply problems.”
The United States is facing the most of these impacts, and the IMF cut its forecast for the country’s expansion in 2021 by one percentage point to 6.0%.
The report also showed a reduction in growth forecasts for other industrialized economies. The outlook for Germany fell 0.5 percentage points to 3.1% from July’s outlook, while the outlook for Japan fell 0.4 percentage points to 2.4%.
China’s expansion forecast in 2021 was lowered 0.1 points to 8.0% with the IMF citing a faster-than-expected reduction in public investment spending.
