IMF’s Georgieva: IMF to revise up previous forecast of 5.5% global growth in 2021

The International Monetary Fund’s (IMF)  Managing Director Kristalina Georgieva said on Monday that the IMS is planning to  revise upward the previous forecast for 5.5% global growth in 2021, as reported by Reuters.  

Additional takeaways

“IMF  will also raise 2022 forecast.”

“Global economy is  on firmer footing but there are prospects diverging dangerously  within nations, across countries and regions.”

“IMF sees increased growth due to new US fiscal package and expected vaccine-powered recovery in advanced economies this year.”

“Multi-speed recovery powered increasingly by US and China; IMF sees extremely high uncertainty  over financial conditions.”

“Faster US recovery could trigger higher interest rates, tighter financial conditions and big outflows from emerging and developing economies.”

“It’s prudent to keep eye on financial risk, included stretched asset valuations, prevent excess financial volatility.”

“IMF foresees a sharp rise in insolvencies among small and medium-sized businesses, threatening jobs.”

“Low-income countries need $200 billion over 5 years to fight the pandemic, $250 billion  to return to the path toward higher income levels.”

Market reaction

These comments don’t seem to be helping the market mood improve. As of writing, the S&P 500 Index was down 0.32% on the day at 3,958.