Pandemic Impeding Prospects in Developing Market; Warns IMF

Story Highlights
  • IMF sounds alarm as pandemic darkens markets in developing nations.
  • Cites varied vaccine distribution dynamics as a major setback.
  • Predicts delayed growth of developing economies.

Washington: The IMF on Tuesday stated that the pandemic and the imbalanced vaccine distribution is striking the economic condition of all developing nations globally. Chief economist Gita Gopinath said, “the outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics.

The setback stems from the varied vaccine distribution dynamics which would impact the restoration of the living standards and prolong the downturn. According to Gopinath a global GDP decline by $ 5.3 could be cumulatively recorded over the next half of the decade.

According to IMF’s latest Economic Outlook, the advanced economies would endure near term prospects which would threaten a price hike especially in the United States which has recorded a slow growth against the previously anticipated figures. As per the report, the Output worldwide would grow 5.9 per cent this year, slightly higher than July before slowing in 2022.

Advanced nations are expected to pace up to the pre-pandemic growth in 2022. However, developing markets would struggle to embrace growth in 2024.

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