The International Monetary Fund has warned that threats to the economic recovery from last year’s COVID-19 outages are growing, along with a “dangerous divergence” between richer and poorer countries.
The IMF revised its main forecast for global growth this year, slightly by 0.1 percent to 5.9 percent, while leaving its forecasts for 2022 unchanged at 4.9 percent.
IMF chief economist Gita Gopinath elaborated on those pandemic dynamics at a virtual press conference on Tuesday, saying global supply shortages in the face of revived demand are fueling commodity price inflation passing on to consumers.
“Food prices have risen the most in low-income countries where food insecurity is most acute, increasing the burden on poorer families and increasing the risk of social unrest. Moreover, emerging and emerging economies are facing tougher financing conditions as debt levels rise, inflation rises and their currencies weaken against the US dollar – forcing them to raise interest rates in a bid to “Inflation expectations have been kept under control,” she said.
Gopinath added that challenges such as rising food inflation, food insecurity and rising risk in financial markets are supported by the “continuous control” of the pandemic in global society.
To be part of the group »AOL“just click: Join Group and your request will be approved immediately.