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.”
My 79 second take on the World economic outlook report that we just released. pic.twitter.com/F5rGYlTzNv
— Gita Gopinath (@GitaGopinath) October 12, 2021
The IMF expects inflation to return to pre-pandemic levels if supply chain disruptions are adequately addressed.