IMF’s World Economic Outlook- Highlights

In its World Economic Outlook, which was published on October 12, 2021, International Monetary Fund (IMF) improved its growth forecasts of the Latin American and Caribbean economy in the year 2021.

Highlights

  • As per IMF report, a recovery of 6.3% is expected by 2021 and 2.5% by 2022.
  • These figures indicates that international credit organization observes a little increase in Gross Domestic Product (GDP) for the region against what was evaluated in July. In July 2021, it estimated an increase of 5.8%.
  • IMF expects a growth of 3.2% for year 2022, 0.2% lower than its previous analysis.
  • IMF noted the worse performance of Brazil and Mexico, which are considered as the strongest economies in the region.
  • According to IMF, Brazil’s GDP expansion will be 5.2% in 2021 while 1.5% in 2022.
  • For Mexico, GDP expansion will be 6.2% in 2021 and 4.0 % in 2022.

World Economy

  • According to IMF, world economy will grow by 9% in 2021. In July 2020, it expected an increase by 6%. Growth is still conditioned by prolongation of covid-19 pandemic.
  • IMF projected a growth by 4.9% in 2022.

High inflation

As per IMF, in mid-2022 headline inflation will likely to return to pre-pandemic levels, for advanced economies and emerging & developing economies, amid high uncertainty.

Vaccine gap

The agency noted a huge vaccine gap and big disparities between economically advanced countries and developing countries.  More than 60% of the population are vaccinated in advanced economies while 96% of the population in are unvaccinated in low-income countries.

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