Delta variant weakening global economic recovery, says IMF
However, the IMF stated in its most recent World Economic Outlook that "momentum had decreased" since then as the highly transmissible Delta strain of coronavirus prevented "a full restoration" to normalcy.
Continued health concerns, supply chain disruptions, and increasing inflation around the world, according to IMF chief economist Gita Gopinath, are to blame for the downturn. She also cited shortages of raw materials and increasing commodity prices as reasons for the "increased threats to economic prospects." The IMF downgraded its global growth forecast for 2021 to 5.9%, but warned this hid huge downgrades for some rich nations.
However, as supply chain concerns resolve, the IMF forecasts most advanced economies to revert to pre-pandemic growth levels next year, and to exceed it by roughly 1% in 2024.