IMF: Global growth in 2021 now expected to be slightly below July forecast of 6%

Comments from IMF leader Georgieva:

• Economic divergence, inflation and high debt levels post 'more pronounced' risks
• US and China remain vital engines of growth
• Italy and Europe are showing increasing momentum
• Growth is worsening elsewhere
• Advanced economies will return to pre-pandemic levels by 2022 but most emerging and developing countries will take 'many more years' to recover
• Inflation pressure to subside in most countries in 2022 but likely to continue in some emerging and developing economies
• Rich countries should increase delivery of covid-19 doses to developing world
  

She is painting an ugly picture for emerging markets. I tend to think commodity-exporting EMs can do well in this environment but those without abundant raw materials are in for a brutal few years.

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October 06, 2021 at 01:09AM
Adam Button
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