The International Monetary Fund is slightly downgrading its outlook for the global recovery from the pandemic recession.
In its latest World Economic Outlook released Tuesday, the IMF foresees global growth this year of 5.9 percent, compared with its projection in July of 6.0 percent.
It says this is reflecting the persistence of supply chain disruptions in industrialised countries and deadly disparities in vaccination rates between rich and poor nations.
For the United Sates, the world’s largest economy, the IMF predicts growth of 6.0 per cent for 2021, below its July forecast of 7.0 percent.
The downward revision reflects a slowdown in economic activity resulting from a rise in COVID-19 cases and delayed production caused by supply shortages and the resulting acceleration of inflation.
The IMF predicts that for the world’s advanced economies as a whole, growth will amount to 5.2 percent this year, compared with a meager predicted gain of 3.0 per cent for low-income developing countries.