IMF warns of pandemic risks to global economy

Source : 112 Ukraine

Until the end of 2021, the global economy will continue to grow; however, the risks of the impact of the pandemic remain, according to a new IMF forecast
15:44, 13 October 2021

Open source

The global economy will continue to grow until the end of 2021, and the growth will make 5.9% as DW reported citing the IMF.

The document notes that global GDP growth rates will be 0.1% lower than predicted by the IMF earlier, in July 2021. At the same time, the forecast of IMF experts for 2022 remained unchanged; the growth of world GDP is expected to be 4.9%.

A variety of reasons for the slowdown in the growth rate of global GDP are noted. First of all, they are affected by the impact of the coronavirus pandemic. Delivery chains have suffered due to measures assumed by most governments in the world to control the spread of infection. It influenced such export leaders as Germany and the USA.

Related: Global economy may lose over $4 trillion due to Covid-19 impact on international tourism, - UN

On the other hand, the pandemic still poses a significant risk to the health of residents in developing countries, the document says.

The IMF expects that in a number of countries around the world there will be an increase in production efficiency, which will not always be associated with an increase in the number of jobs. According to experts' forecasts, countries engaged in the export of raw materials will find themselves in a more advantageous position - due to the high prices of raw materials. The IMF believes that after 2022, the growth rate of world GDP will drop to 3.3%.

Related: Inflation rate in 2022 will be 6.6%, - Ministry of Economy forecast

According to experts, accelerated vaccination of the world population should play a priority role for the stable growth of the world economy. For the favorable development of the world economy, it is necessary to vaccinate about 40% of the world's population by the end of 2021, the IMF document says.

As we reported, the International Monetary Fund approved $650 billion in help for vulnerable countries to tackle the economic crisis from the Covid-19 pandemic.

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