IMF Sticks to Previous Forecast for Global Economy for the Time Being

For the time being, the International Monetary Fund (IMF) is sticking to its earlier forecast that the global economy will grow by about 6 percent this year. That’s what IMF chief Kristalina Georgieva said at an online meeting for economists.

 

According to her, the outlook for individual countries now looks different from the last major estimate in April.

The influential Washington organization will release new forecasts next week. But Georgieva often releases something new ahead of IMF estimates, including now. However, much remains unclear. For example, Georgieva has not yet told how much growth is expected next year.

Since April, the rich countries of the world, in particular, have made great strides in vaccinating their populations. Together with other international organizations, the IMF recently pointed out that the difference in resources threatens to create a separation between rich and poor countries. However, the world should focus on vaccinations in all countries, and money should also be made available for this, the fund believes.

“Some countries are now expected to grow faster, and some countries are now expected to grow more slowly,” Georgieva said. However, she also indicates that the rapid spread of the Delta variant of the coronavirus could also slow the momentum of the economic recovery. As a result, governments risk having to implement new restrictive measures, resulting in economic damage.