Jakarta, CNBC Indonesia – International Monetary Fund (IMF) cut global economic growth forecasts. The agency cut its forecast for economic growth this year to 5.9% from the previous calculation of 6.0% in July.
The IMF said the uncertainty was getting bigger even though the number of Covid-19 infections had started to decline and the percentage of vaccinations had started to rise. The Delta variant is said to have created persistent supply chain disruptions and pushed down prices.
“Delta’s rapid spread and the threat of new variants have increased uncertainty about how quickly the pandemic can be contained,” the agency said Wednesday (10/13/2021).
“Policy choices are becoming more difficult, facing multidimensional challenges in the face of weak employment growth, rising inflation, food insecurity, declines in human capital accumulation and climate change with limited room for maneuver.”
The economic growth of a number of countries was also revised. US growth in 2021 to 6.0%, from 7.0% in July, is a level considered the strongest pace since 1984.
The IMF also cut China’s 2021 economic growth by 0.1 points to 8.0%, amid a faster-than-expected reduction in public investment spending. The forecast for India’s economic growth was unchanged at 9.5%, but the outlook for other developing Asian countries has diminished as the pandemic worsens.
Furthermore, the IMF cut its economic forecast by 1.4 points for the “ASEAN-5” group. These include Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
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