Columbia’s IMF sees signs of stronger global recovery, warns of significant headwind

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Columbia’s IMF sees signs of stronger global recovery, warns of significant headwind

On Saturday, Geoffrey Okamoto, the First Deputy Managing Director of IMF (International Monetary Fund), a Washington DC-based sister organization of World Bank that promotes global growth and international trade, said on Saturday that a raft of robust signs regarding a rapid recovery in global economy had been lurking over the horizon, nonetheless, Okamoto had also cautioned of steep headwinds including appearances of new pandemic pathogen variants.

In point of fact, speaking to the China Development Forum earlier in the day, Okamoto said that the IMF would update its previous forecast of a global growth of 5.5 per cent this year by early-April, largely in a bid to reflect a mammothlike $1.9 trillion in pandemic stimulus package disbursed by the US Government earlier this month.

IMF expresses concerns on growing gap between advanced and emerging economies

Aside from that, adding that the pandemic’s fiscal fallout might leave behind a deep scar on multiple economies across the globe, Okamoto was quoted saying in the statement that a rapidly swelling gap between the advanced and emerging economies appeared to be widening much-earlier than anticipated during a pandemic era new normalcy with more than 90 million people falling below a threshold of an extreme poverty since the onset of pandemic outbreak.

On top of that, praising China’s approach to contain the outbreak which seemingly had prompted the nation’s economic recovery to a pre-pandemic level, Okamoto pointed towards a swathe of perilous signs of contraction outside of China, in particular in the emerging market economies.

Nevertheless, IMF projected earlier that the pandemic would result in a plunge of about 22 per cent in per capita GDP (Gross Domestic Product) on the emerging and developing countries between 2020 and 2022.