Delta Variant Weakening Global Economic Recovery: Says IMF

There Is an Increasing Divide by Coronavirus Vaccine Between the Poor and Rich Countries

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The recovery of the economy has gradually weakened in multiple developed countries around the world due to the powerful impact of the delta variant of the COVID-19 infection, according to the International Monetary Fund (IMF). The fund has cut their growth forecast for the year 2021 for some of the advanced economic nations, particularly the United States, Germany, and Japan, and has blamed the continuous risks on public health, issues with supply China management, and high rates of inflation.

They also think that most of the rich nations throughout the globe will be able to grow back at a much faster rate than previously expected in the upcoming year of 2022.  Although a warning has been given to the developing countries to fall back due to the growing issue of ‘vaccine divide’ after the onset of the delta variant of coronavirus pandemic.

There has been a sharp contraction in the global economy of the year 2021, but it had been able to make a strong rebound in the first half of the year as multiple nations began to unlock, after there has been a reduction in the number of active cases after the spread of delta variant, during which hundreds of lives had been lost.

However, the International Monetary Fund stated in its latest edition of World Economic Outlook that the momentum has gradually reduced; since then, the delta variant of coronavirus, which had been the highly transmissible strain of the deadly infection, has stopped, and a complete return towards normal routine is being expected.

Global growth forecast

The chief economist of IMF, Gita Gopinath, has pointed towards the disruption that is being faced in the supply China management those multiple nations are currently facing, including the United Kingdom, which has coupled together with the escalating demand is causing feeding inflation.

She has also blamed the shortage of goods, and the increased commodity prices stated that there is an increased risk to the economic prospects.

While there has been a cut in the projection by IMF of marginally to 5.9% for global growth in the year 2021, it might have masked a large amount of downgrading for some of the developed nations of the world. It is notably expected by the IMF that the largest economy of the world, United States is to grow about 6% this year, which is slightly down from the previously forecasted 7% in the month of July amid the delta variant spread.

Countries like Germany and Japan, the third and fourth-largest economies of the world and likely to further expand by 3.1% and 2.4%, respectively, which is down from 3.^% and 2.8% forecasted by the IMF sometime before.

The economy of the United Kingdom has been forecasted to grow around 6.8% in the year 2021, which is reduced from the previous amount forecasted to be 7% further.

Vaccine divide

However, it is expected by the IMF that the countries with advanced economies would be able to return their growth trends to pre-pandemic levels in the upcoming year as the issues regarding the supply chain are likely to ease by then, which have drastically disrupted amid the delta variant of the coronavirus pandemic, and would exceed it further by 1% by 2024.

In contrast, it is being thought by the IMF that most of the developed and emerging economic conditions of the nations throughout the globe (excluding China from the list) are expected to fall back by the coming year and would remain at 5.5% below the forecast of pre-pandemic level by the year 2024.

The amount of divergence are consequences that are due to the great ‘vaccine divide’ along with a large number of disparities in the policy supports. While more than 60% of the total general population of advanced nations have become fully vaccinated against the coronavirus infection, most of which have occurred soon after the onset of the delta variant of the deadly infection, while some are even receiving booster shots for their vaccines.

About 96% of the general population of the countries that are under-developed or developing nations have still remained to be unvaccinated. The entire global community is required to step up to help ensure the access of equitable vaccines for each country.

Read also Ivermectin: A False Covid ‘Miracle’ Drug

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