GUANGZHOU, China, Dec. 3, 2021 /PRNewswire/ -- International
Finance Forum (IFF) today released its first "IFF Global Finance
and Development Report," aimed to analyze, outline and forecast
global economic outlook, risks and policy priorities. The report
shows that the global economy has seen a rebound thanks to
expanding vaccination coverage, continued fiscal stimulus and
monetary accommodation.
Specifically, IFF estimates that the global economy is forecast
to grow 5.9% this year, recovering to a pre-pandemic 2019 level.
The global economy staged a strong rebound in the first half of
this year, but the growth momentum has softened in the second, as
outbreaks of the more contagious delta variant occurred in many
parts of the world. The recovery remains on track, though the pace
has continued to vary from one country to another.
However, the strong recovery has caused prices to rise in many
countries. Global consumer price inflation is projected to reach
4.5% this year, and to moderate to 3.8% in 2022, as demand-supply
gaps narrow, according to IFF estimates.
"Despite the momentum of the global economic recovery, there are
still significant downside risks in the coming year," said Zhuang
Juzhong, chief economist of IFF and a former deputy chief economist
of the Asian Development Bank. "Slower-than-expected vaccine
rollout, especially in the developing world, and more virus
mutations could lead to resurgences of outbreaks worldwide, causing
governments to reimpose strict containment measures thus slowing
down growth."
In 2022, the global economy is projected to grow 4.7%, as
supported by ongoing fiscal and monetary policies with expanding
vaccination coverage, the IFF report shows. However, higher and
more persistent inflation could prompt abrupt adjustments in the
direction of monetary policy in advanced countries, IFF warned,
adding that geopolitical tensions could also take a toll on the
recovery.
IFF also pointed out in the report that the pandemic is leaving
lasting scars on social and human development worldwide, as it has
disrupted the global fight against extreme poverty and increased
income inequality.
To address ongoing issues and ensure a stable outlook, IFF urged
that the international community should work together to expedite
vaccine uptake, ensure the stability of monetary policies,
eliminate trade tensions, boost green finance development and
accelerate support for low-income nations.
For the full report, please visit:
http://iff.org.cn/uploads/2021GAM/GFAD-report20211202.pdf
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SOURCE International Finance Forum (IFF)