IMF trims global growth forecast

In its World Economic Outlook, the IMF trimmed its 2021 global growth forecast to 5.9% from its 6.0% forecast it made in July. Although seemingly modest, the IMF said in their report that this masks their outlook for low-income developing countries, which has darkened considerably due to worsening pandemic dynamics. It also said that the trim in forecast reflects the IMF's worry that supply bottlenecks will continue to halt post-pandemic recovery. Although they stated that overall economic recovery was too strong to bring up talks of stagflation, they believed that the global economy has entered a phase of inflationary risk and has warned central banks to act sooner rather than later if supply disruptions and pricing pressure continue.