The IMF warns of growing threats to global economic recovery

The IMF is warning that threats to the global eocnomic recovery are growing along with a ‘dangerous divergence’ in recoveries between richer and poorter nations.

The International Monetary Fund did not mince words in its latest outlook for the global economy released on Tuesday, warning that the threats to the economic recovery from last year’s COVID-19 disruptions are growing, along with a “dangerous divergence” between richer and poorer countries.

The IMF revised its headline forecast for global growth this year down slightly by 0.1 percent to 5.9 percent while leaving its projections for 2022 unchanged at 4.9 percent.

“This modest headline revision, however, masks large downgrades for some countries,” said the fund, noting that “the outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics.”