According to Australia.com.cn, the international Monetary Fund (IMF) released a very new “World Economy Outlook Report” on December 12, affected by the epidemic, the global economy in 2021 hopes to link up but the momentum slowed down. The IMF estimated the economy would expand 5.9 percent for the year, down 0.1 percentage point from its forecast in July. However, Australia suffered a significant downgrade, with the IMF slashing its 2021 economic growth rate to 3.5 percent from the 5.3 percent forecast in July.
The global economy is still recovering, but the impact of COVID-19 on economies will be doubled forever, the report said. For Australia, because the delta mutant strains of stretching, forcing the state of Victoria, new south wales and heads in closed condition, which makes the IMF in the “look to the world economic report” Australia slashed its 2021 economic increase rate to 3.5%, this is by far Australia very big drop in the report. But considering the lower base and expected rebound, the IMF raised Australia’s realistic GDP growth rate for 2022 to 4.1 per cent from 3 per cent.
IMF chief economist Gita Gopinath revealed that the global awakening was continuing, but had been slowed by the pandemic. The divergence of economic prospects across economies, influenced by the emergence of vaccines and differing levels of policy support, is an important question for the global recovery. The inflation pressure brought by the imbalance between supply and demand will also aggravate the harm of economic recovery and increase the difficulty of political response. “The overwhelming number of health risks is holding back economic normalcy,” she said. We are all on the same path, but the epidemic has not ended in all places, and the economy of any place will not be completely improved.”
In response, Australia’s treasurer, Josh Frydenberg, revealed that the enthusiasm for the coming year reaffirmed the underlying strength and resilience of the Australian economy. He said: “With NSW now reopening, Victoria will be reopening very quickly, and the national economy is being reignited. The IMF feels the economy will see a strong rebound as constraints ease.”
