IMF Trims 2021 GDP Forecast, Citing 'Vaccine Divide,' Inflation

• The International Monetary Fund expects global economic growth in 2021 to fall slightly below its July forecast of 6%, IMF chief Kristalina Georgieva said on Tuesday, citing risks associated with debt, inflation and divergent economic trends in the wake of the COVID-19 pandemic. 
• Georgieva said the global economy was bouncing back but the pandemic continued to limit the recovery, with the main obstacle posed by the "Great Vaccination Divide" that has left too many countries with too little access to COVID-19 vaccines. 
• Additionally, inflation pressures, a key risk factor, are expected to subside in most countries in 2022 but could continue to affect some emerging and developing economies, she said, warning that a sustained increase in inflation expectations could cause a rapid rise in interest rates and tighter financial conditions.

(Source: Reuters)