The IMF trimmed global growth in its new set of forecasts. The IMF said that it is reducing slightly its 2021 global growth forecast to 5.9% from the July forecast of 6.0%. The IMF felt that for 2022 global growth will remain 4.9%.
The IMF said that persistent supply chain disruptions, inflation pressures, less than expected growth in larger economies, downgrades, limited effect of economic stimuli were causing difficulty.
IMF’s chief economist, Gita Gopinath, said that IMF is growing more concerned about persistent inflation. “Central banks should be prepared to act quickly if the risks of rising inflation expectations become more material in this uncharted recovery.”
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