IMF slashes global growth outlook amid Omicron hit

2022-01-25 09:20:00 PM

IMF slashes global growth outlook amid Omicron hit #eNCA #DStv403

Dstv 403, Imf Slashes Global Growth Outlook Amid Omicron Hit

IMF slashes global growth outlook amid Omicron hit eNCA DStv403

The Omicron variant of Covid-19 is creating an obstacle course for the global economy, which will slow growth this year, notably in the world's two largest economies, the IMF said Tuesday.

After the solid recovery last year when the global economy grew an estimated 5.9 percent, the IMF cut projections for nearly every country -- with India a notable exception -- but it was the downgrades to the United States and China that had the biggest impact.

AFP | Jonathan WALTER"Bold and effective international cooperation should ensure that this is year the world escapes the grip of the pandemic," Gita Gopinath, the fund's newly-installed first deputy managing director, told reporters.The biggest drag on the global outlook is the sharp slowing in the United States and China, including factors beyond the impact of the virus.

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Is Omicron the endgame for the pandemic? WHO's top health experts offer conflicting outlooksWHO's Europe Director said Omicron may present an 'endgame' for Europe, but the organisation's chief later said it's 'dangerous to assume' that notion.

WHO warns Omicron is not the last variantThe head of the World Health Organization says it is dangerous to assume the Omicron variant will herald the end of Covid-19’s acutest phase

New Zealand’s Jacinda Ardern cancels her wedding as Omicron curbs tightenedThe island state moves to ‘red’ level, which tightens mask-wearing, gathering limits and social distancing requirements I know we all probably must have heard about Bitcoin but don't know how it works, I tried it in a week ago by a man who recommended me to Leticia_thomas7 on Twitter She guides me through and i made a return of R15500 after a week of trading, connect with her As a mother of two kids I have battled alot with my financial state to the point of begging from friends just to survive,until I started Bitcoin trading with the help of AMBREYMARCUS1 I made a successful withdrawal of R 200,000 with the help of AMBREYMARCUS1 .

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The Washington-based crisis lender cut its world GDP forecast for 2022 to 4.Jan 25, 2022, 11:24 AM facebook twitter email WHO's top experts appeared to disagree on how Omicron might serve as an"endgame" for the pandemic in Europe and the world.The head of the World Health Organisation says it is dangerous to assume the Omicron variant will herald the end of Covid-19’s acutest phase 24 January 2022 - 16:47 Emma Farge and Mrinalika Roy Picture: 123RF/phonlamaiphoto Geneva — The head of the World Health Organisation (WHO) warned on Monday that it was dangerous to assume the Omicron variant would herald the end of Covid-19’s acutest phase, exhorting nations to stay focused to beat the pandemic.23 January 2022 - 22:43 Tracy Withers New Zealand moved to Covid-19 'red' alert on Sunday.

4 percent, half a point lower than the October estimate, due to the"impediments" caused by the latest outbreak, although those are expected to begin to fade in the second quarter of the year. "The global economy enters 2022 in a weaker position than previously expected," the International Monetary Fund said in the quarterly update to its World Economic Outlook, adding that"the emergence of the Omicron variant in late November threatens to set back this tentative path to recovery. On Sunday, WHO's Regional Director for Europe suggested the variant might herald an"endgame" for Europe." The outlook remains beset by risks, including geopolitical tensions and a wave of price increases hitting consumers and businesses that is expected to last longer than previously expected.” Though Omicron has sent total cases soaring to nearly 350-million, its less lethal impact and the increasing prevalence of vaccines has led to optimism in some parts that the worst of the pandemic may have passed. After the solid recovery last year when the global economy grew an estimated 5. For more stories visit Business Insider.9 percent, the IMF cut projections for nearly every country -- with India a notable exception -- but it was the downgrades to the United States and China that had the biggest impact. The government has delayed a phased reopening of the border to keep Omicron out while it rushes to administer booster vaccination shots and begin inoculating children.

"These impediments are expected to weigh on growth in the first quarter of 2022," the report said. The World Health Organisation Director-General on Monday cautioned against assuming that the pandemic is approaching an"endgame" and said it's"dangerous" to believe now that Omicron will be the last variant. “We must work together to bring the acute phase of this pandemic to an end. IMF economic growth forecasts AFP | Jonathan WALTER "The negative impact is expected to fade starting in the second quarter, assuming that the global surge in Omicron infections abates and the virus does not mutate into new variants that require further mobility restrictions." The fund once again stressed that controlling the pandemic is critical to the economic outlook and urged widespread vaccinations in developing nations, which have fallen short even as advanced economies have moved to deploying booster shots among their already highly-vaccinated populations. Tedros Adhanom Ghebreyesus "There are different scenarios for how the pandemic could play out. "Bold and effective international cooperation should ensure that this is year the world escapes the grip of the pandemic," Gita Gopinath, the fund's newly-installed first deputy managing director, told reporters. Tedros’ bid for a second term received a boost when the WHO shelved a decision on his native Ethiopia’s request to investigate accusations of links to rebel forces. She said the cumulative economic losses inflicted by the pandemic over five years are expected to total nearly $14 trillion through 2024, compared to the pre-pandemic forecasts. But it's dangerous to assume that Omicron will be the last variant or that we are in the endgame," he said.” The government’s response was triggered by confirmation that a family from the South Island city of Nelson, who recently visited Auckland, has Omicron, and that there is no evidence linking them to the border.

- US, China slowdown - The biggest drag on the global outlook is the sharp slowing in the United States and China, including factors beyond the impact of the virus. With US President Joe Biden's massive social spending plan stalled in Congress, the IMF subtracted the expected growth impact the program would have had on the economy. The day before, WHO's Regional Director for Europe, Hans Kluge, told Agence France Presse that"it's plausible that the region is moving towards a kind of pandemic endgame. Reuters. Together with the supply chain snarls that have beset American businesses and manufacturing, these factors slashed 1.2 percentage points off GDP, which is now expected to expand four percent this year, the IMF said. "We anticipate that there will be a period of quiet before Covid-19 may come back towards the end of the year, but not necessarily the pandemic coming back," Kluge added. While that is a historically high rate for the world's largest economy, it is far slower than the 5. “As for mine, my wedding will not be going ahead but I just join many other New Zealanders who have had an experience like that as a result of the pandemic,” Ardern said, without elaborating when her nuptials were planned for.

6 percent expansion in 2021. IMF newly-installed number two, Gita Gopinath, said supply chain problems pressuring prices should subside later this year, but an inflation surprise could cause the Federal Reserve to act more aggressively to contain the increase AFP/File | PEDRO UGARTE Meanwhile, China's"zero-tolerance Covid-19 policy" has contributed to the slowdown in the Asian power, and the fund cut 0.8 points off expected growth for this year to 4.8 percent, the report said. "China's downgrade reflects continued retrenchment of the real estate sector and weaker than expected recovery in private consumption," Gopinath said Other major economies suffered sharp downgrades amid the ongoing pandemic disruptions, including a 0. More stories like this are available on.

8-point cut for Germany, and 1.2-point deductions for Brazil and Mexico. India, however, saw a 0.5-point upgrade to nine percent, Japan saw a more modest improvement for growth of 3.3 percent, the IMF said.

The outlook for 2023 is somewhat improved,"however not enough to make up ground lost due to the downgrade to 2022." - Inflation flares, rates rise - A key challenge facing the global economy is the surge in prices, especially energy and food. The phenomenon is expected to bring more aggressive action by key central banks like the US Federal Reserve, which will raise borrowing costs worldwide, hindering recovery efforts, particularly in indebted developing nations. "Elevated inflation is expected to persist for longer than envisioned in the October WEO, with ongoing supply chain disruptions and high energy prices continuing in 2022," the IMF said. If"the pandemic eases its grip" and energy price increases moderate,"inflation should gradually decrease as supply-demand imbalances wane in 2022 and monetary policy in major economies responds.

" The WEO baseline assumes the Fed will hike the benchmark interest rate three times this year and three in 2023. But Gopinath cautioned that"higher inflation surprises in the US could elicit aggressive monetary tightening by the Federal Reserve and sharply tightening global financial conditions." Inflation is expected to average 3.9 percent in advanced economies and 5.9 percent in emerging market and developing economies in 2022, before subsiding in 2023.

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