05-10-2021
International Monetary Fund (IMF) President Georgieva said that the IMF predicts that the global economic growth this year will be lower than the 6% expected in July, mainly considering debt-related risks, inflation and economic trends after the epidemic. She pointed out that the global economy is rebounding, but the epidemic continues to suppress the recovery. The vaccination gap between countries is the main obstacle, and too many countries cannot obtain the new crown vaccine. If the gap in vaccination rates is not eliminated, it may hinder the recovery of the global economy and cause the global economy to lose up to 5.3 trillion US dollars in the next five years. Georgieva said that the global economic outlook to be announced next week will predict that the economic output of developed economies will return to pre-epidemic levels next year, but most emerging economies and developing countries will need more years to recover. She also said that China and the United States are still important engines of economic growth, while growth momentum in Europe and Italy is getting stronger, but other regions are deteriorating. She predicts that inflationary pressures will subside in most countries next year, but will continue to affect some emerging and developing economies, and warned that inflation expectations will continue to rise, which may lead to a sharp rise in interest rates and tightening of financial conditions. In addition, she mentioned that the current global debt level is about 100% of the global gross product (GDP), which means that many developing countries have very limited ability to issue new debt under favorable conditions.
