IMF says trimming global growth forecast due to rising risks

The head of the International Monetary Fund says the agency is trimming its forecast for global growth this year

WASHINGTON -- The head of the International Monetary Fund says the agency is trimming its forecast for global growth this year.

IMF Managing Director Kristalina Georgieva on Tuesday cited rising risks from inflation, debt and a divergence in growth prospects between nations with access to coronavirus vaccines and those in need of shots.

In remarks prepared for a university audience in Italy, Georgieva said that the goal of the annual meetings next week of the 190-nation IMF and its sister lending agency, the World Bank, will be to address the growing risks in a coordinated way to improve the global economy’s outlook.

She noted that the IMF’s World Economic Outlook in July had projected a solid global rebound of 6%, which would have represented a dramatic rebound from a 3.2% contraction in the pandemic year of 2020.