IMF lifts growth for developing nations, warns of uneven recovery

Updating growth for developing countries to 6.7 percent in 2021, the IMF warned that many outside Asia will lag behind.

Developing economies will grow faster this year than previously forecast, according to the International Monetary Fund (IMF), but many outside Asia will lag behind their more developed peers, potentially scuppering progress on narrowing the gap in living standards. In its World Economic Outlook – released at the start of the IMF’s and World Bank’s spring meetings – the fund raised its overall prediction for growth across emerging market and developing economies to 6.7 percent in 2021, from 6.3 percent in its January report. All regions enjoyed an upgrade to 2021 growth projections. However, the fund kept its 2022 forecast for emerging markets unchanged at 5.0 percent, but lifted its predictions for advanced economies’ growth this year and next to 5.1 percent and 3.6 percent, respectively.