PR93466

GUANGZHOU, China, Dec. 4, 2021 /PRNewswire=KYODO JBN/--

International Finance Forum (IFF) ( http://www.iff.org.cn/php/list.php?tid=240) today

released its first "IFF Global Finance and Development Report," aimed

to analyze, outline and forecast global economic outlook, risks and policy

priorities. The report shows that the global economy has seen a rebound thanks

to expanding vaccination coverage, continued fiscal stimulus and monetary

accommodation.

Specifically, IFF estimates that the global economy is forecast to grow 5.9%

this year, recovering to a pre-pandemic 2019 level. The global economy staged a

strong rebound in the first half of this year, but the growth momentum has

softened in the second, as outbreaks of the more contagious delta variant

occurred in many parts of the world. The recovery remains on track, though the

pace has continued to vary from one country to another.

However, the strong recovery has caused prices to rise in many countries.

Global consumer price inflation is projected to reach 4.5% this year, and to

moderate to 3.8% in 2022, as demand-supply gaps narrow, according to IFF

estimates.

"Despite the momentum of the global economic recovery, there are still

significant downside risks in the coming year," said Zhuang Juzhong, chief

economist of IFF and a former deputy chief economist of the Asian Development

Bank. "Slower-than-expected vaccine rollout, especially in the developing

world, and more virus mutations could lead to resurgences of outbreaks

worldwide, causing governments to reimpose strict containment measures thus

slowing down growth."

In 2022, the global economy is projected to grow 4.7%, as supported by ongoing

fiscal and monetary policies with expanding vaccination coverage, the IFF

report shows. However, higher and more persistent inflation could prompt abrupt

adjustments in the direction of monetary policy in advanced countries, IFF

warned, adding that geopolitical tensions could also take a toll on the

recovery.

IFF also pointed out in the report that the pandemic is leaving lasting scars

on social and human development worldwide, as it has disrupted the global fight

against extreme poverty and increased income inequality.

To address ongoing issues and ensure a stable outlook, IFF urged that the

international community should work together to expedite vaccine uptake, ensure

the stability of monetary policies, eliminate trade tensions, boost green

finance development and accelerate support for low-income nations.

For the full report, please visit:

http://iff.org.cn/uploads/2021GAM/GFAD-report20211202.pdf

SOURCE: International Finance Forum (IFF)