Global economic recovery still in trouble due to virus amid inflation: IMF

The International Monetary Fund reiterated its apprehension over the global economic recovery on reports of the outbreak of inflation amid the ongoing pandemic situation that is yet to see a comprehensive result from vaccination.

While calling on wealthy countries to take immediate measures to accelerate vaccination in poorer countries by sharing doses with them, the IFM also urged the Federal Reserve and other central banks to act on the current inflation pressure if it is not momentary.

About 190 countries take the IMF-set economic policy. In its annual meeting, it has alerted about the terrible gap in the vaccination rates between poor and wealthy countries.

Emphasising vaccination as the only helping factor for global economic recovery in this pandemic time, the IMF urged the rich countries to set a target of 40 per cent population of all countries to be vaccinated by the end of this year and 70 per cent by the middle of next year.

While nearly 60 per cent of the population in advanced economies are now fully vaccinated, only about 4 per cent of the population in poorer countries are.

The IMF said that the emergence of virus variants has disturbed the economic recovery, resulting in a downward trend. While financial representatives of rich countries vowed that they would boost the supply of vaccines and essential medical products, they have also flagged the prevalence of inflation.

The finance officials also noted rising global inflation pressures and said the Fed and other central banks need to "act appropriately" if the price spikes prove to be more of a threat to the economic recovery.

The IMF issued an updated economic forecast this week that slightly downgraded its forecast for global growth to 5.9 per cent from 6 per cent in July. The downgrade reflected persistent supply chain disruptions and the wide disparity in vaccination rates.