The Washington-based crisis lender cut its world GDP forecast for 2022 to 4.4 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 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. 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.
Other major economies suffered sharp downgrades amid the ongoing pandemic disruptions, including a 0.8-point cut for Germany, and 1.2-point deductions for Brazil and Mexico.
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