The change comes as advanced economies, such as the United States and Germany, struggle to recover from the pandemic. The IMF has maintained its growth prediction for 2022, but has issued a warning about “dangerous” uneven recoveries.
The global recovery from the COVID-19 epidemic has slowed, according to the latest World Economic Outlook update provided by the International Monetary Fund (IMF) on Tuesday.
As major economies such as the United States and Germany grapple with supply chain constraints, the world economy is now expected to grow 5.9% this year, down 0.1 percentage point from the IMF’s July prediction. The reduction underscores bleak prospects in low-income developing countries, where the sluggish implementation of COVID-19 vaccines has slowed recovery.
Producers in advanced economies are scrambling for components and raw materials due to shipping snarls, a shortage of shipping containers, and a sharp surge in demand as pandemic-related restrictions are eased. In August, industrial production in Germany fell to its lowest level since April of last year, owing to a 17.5 percent reduction in automobile and auto part manufacturing due to supply chain disruptions.
