IMF lowers 2021 global growth outlook

IMF chief economist Gita Gopinath speaks during an interview with AFP at the International Monetary Fund headquarters in Washington DC on October 12, 2021. - Rising energy prices are weighing on households but the recent spike is unlikely to fuel a 1970s-style oil crisis and should retreat early next year, IMF chief economist Gita Gopinath told AFP Tuesday. (Photo by PEDRO UGARTE / AFP) (Photo by PEDRO UGARTE/AFP via Getty Images)

IMF chief economist Gita Gopinath speaks during an interview with AFP at the International Monetary Fund headquarters in Washington D.C. on October 12, 2021. (Photo by PEDRO UGARTE/AFP via Getty Images)

OAN Newsroom
UPDATED 1:12 PM PT – Tuesday, October 12, 2021

The International Monetary Fund slightly lowered its global growth outlook. The IMF reduced its World Economic Outlook global growth forecast for 2021 from six percent to 5.9 percent this week.

The organization cited concerns over global inflation and ongoing supply chain issues, especially in low income nations, due to the uncertain future course of the pandemic. Ongoing chip shortages reportedly contributed to the downgrade as the technology sector has continued to reel from the pandemic-caused scarcity.

“Pandemic outbreaks in critical links of global supply chains have resulted in longer than expected supply disruptions, feeding inflation in many countries,” explained Gita Gopinath, IMF chief economist. “Overall, risks to economic prospects have increased and policy trade-offs have become more complex.”

The IMF expects inflation to return to pre-pandemic levels if supply chain disruptions are adequately addressed.

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