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IMF lowers global economic growth forecast

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In its forecast for global economic growth this year, the International Monetary Fund (IMF) slightly decreased its outlook.

IMF, economic growth forecast

The IMF forecasts a global economic growth rate of 5.9 percent for this year. It was part of its World Economic Outlook report posted on the institution website on Wednesday. That’s 0.1 percentage points lower than the 6.0% forecast in July. Next year’s global economic growth remains at 4.9%.

This downward revision to the forecast reflects the disruption to supply chains that has affected the economic recovery in advanced countries and the impact of Covid-19 on low-income countries. Nevertheless, the IMF found some export-oriented emerging markets to have a good near-term outlook.

Specifically, the economic growth forecast for this year in developed countries such as the U.S., the euro area, Japan, and the U.K. was 5.2%. This was 0.4 percentage points lower than the July forecast. Meanwhile, for emerging and developing country groups such as China, India, and Brazil, the forecast increased by 0.1% point from July to 6.4%.

The U.S. economic growth forecast for this year is 6%, down 1.0 percentage point from the July forecast, the Eurozone 5% (up 0.4 percentage points), Japan 2.4% (down 0.4 percentage points), and the U.K. 6.8 percent (down 0.2 percentage points). China accounted for 8.0% (down 0.1%) and India for 9.5% (maintaining the July forecast).

This year’s economic growth forecast for Korea was 4.3%, the same as in July. Furthermore, the economic growth forecasts for developed countries and emerging and developing countries for next year are 4.5% and 5.1%, respectively.

United States 5.2%, Eurozone 4.3%, Japan 3.2%, United Kingdom 5.0%, China 5.6% and India 8.5%.

Moreover, the International Monetary Fund (IMF) forecasts that global economic growth after 2022 will be about 3.3%. Over the medium term, developed economies are to outperform pre-pandemic forecasts. However, emerging and developing economies growth should slow down.

For MetaNews.

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