IMF: Omicron global growth forecasts likely to be revised downwards

Recent forecasts for global economic growth by the International Monetary Fund are likely to be revised downwards due to the emergence of the Omicron variant of the coronavirus, IMF Managing Director Kristalina Georgieva said today.

“A new variant that could spread very quickly could hurt confidence and in that sense, we are likely to see some downgrade in October forecasts for global growth,” Georgieva told Reuters Next.

The US must tackle inflation

The IMF chief also said that US policymakers need to take action to deal with high inflation, but that such high price pressures are not being observed globally, allowing other economies to change policy at their own pace.

Georgieva said the strength of the US economy has a positive side effect around the world, although it increases the risk that other countries may have to respond with interest rate hikes if the Federal Reserve cuts its easing policy in the coming months, as expected. now most.

SOURCE: AMPE