BAKU, Azerbaijan, July 27
By Zeyni Jafarov - Trend:
The global economy will grow by six percent in 2021 and 4.9 percent in 2022, Trend reports with reference to the July report of the International Monetary Fund (IMF).
"The outlook for the countries with emerging markets and developing countries for 2021 has been revised downward, especially for the Asian countries with emerging markets," the IMF said. "But the forecast for the countries with the developed economy has been raised. This revision reflects the dynamics of COVID-19 pandemic and changes in the policy support measures."
"The 0.5 percentage point improvement in the forecast for 2022 has been mainly stimulated by the more favorable outlook for the countries with the developed economy," the IMF said.
"The inflation rate in most countries in 2022 will return to the level, which was before the COVID-19 pandemic," the IMF said.
"Higher inflation is also expected to be observed in some countries with emerging market and developing economies, which is partially connected with high food prices," the IMF said.
"Central banks should monitor temporary inflationary pressure without responding for it and avoid tightening policy until there is greater clarity about fundamental price dynamics," the IMF said.
"The process of clear informing about the prospects of monetary policy by the central banks will play a key role in shaping inflationary expectations and protecting against a premature tightening of financial conditions," the IMF said.
"The risks to the baseline scenario for the world as a whole testify to the possibility of worsening of the situation," IMF said.
"A double blow to the countries with emerging markets and developing countries will have a strong negative impact on the economic recovery in these countries and the global growth will be below the baseline scenario of this forecast as a result of deteriorating dynamics of the COVID-19 pandemic and the tightening of external financial conditions," the IMF said.