Global GDP to grow at 5.9%

CEYLON TODAY | Published: 2:00 AM Oct 16 2021

The International Monetary Fund (IMF) has lowered its global growth forecast by 0.1 per centage point to 5.9 per cent in 2021 citing that supply disruptions in advanced economies and worsening pandemic dynamics in low-income developing countries as reasons. 

However, the forecast for 2022 has been kept unchanged at 4.9 per cent. Beyond 2022 global growth is projected to moderate to about 3.3 per cent over the medium term. Explaining the decision to lower the growth forecasts IMF’s Chief Economist, Gita Gopinath said that the outlook for low-income and developing countries has taken a turn for the worse due to worsening pandemic dynamics. 

The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions. Partially upsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices, she said. 

(MA)

CEYLON TODAY | Published: 2:00 AM Oct 16 2021

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