In their World Economic Outlook published on Tuesday, the International Monetary Fund said it has lowered its global growth forecast for 2021 to 5.9% from 6% in July due to supply disruptions in advanced economies, Reuters reports.
Release
“The world growth forecast for 2022 was unchanged at 4.9%.”
“The US growth forecast for 2021 decreased by 1 percentage point from the July forecast; German growth decreased by 0.5 points, while Japan’s growth decreased by 0.4 points.”
“China’s growth forecast for 2021 fell to 8.0% from 8.1% in July due to a further reduction in public investment.”
“The 2021 outlook for some low-income developing countries was reduced due to worsening dynamics from COVID-19; some commodity exporters improved with higher prices.”
“Growth risks were sloping downward, including the possible emergence of new variants of coronavirus, more persistent mismatches between supply and demand, and inflationary pressures.”
“Price pressures could lead to faster monetary policy normalization and tighter financial conditions, hurting emerging markets.”
Market reaction
This post does not appear to be having a significant impact on risk sentiment. At time of writing, S&P futures were up 0.16% on the day.
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