{"id":59845,"date":"2021-10-12T08:55:58","date_gmt":"2021-10-12T13:55:58","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59845"},"modified":"2021-10-12T08:55:58","modified_gmt":"2021-10-12T13:55:58","slug":"imf-issues-global-stagflation-alert-cuts-global-gdp-as-it-warns-of-rising-inflation-and-dangerous-divergence","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59845","title":{"rendered":"IMF Issues Global Stagflation Alert: Cuts Global GDP As It Warns Of Rising Inflation And &#8220;Dangerous Divergence&#8221;"},"content":{"rendered":"<header class=\"ArticleFull_header__11o5_\">\n<h3 class=\"ArticleFull_title__2cUI6\"><a href=\"https:\/\/www.zerohedge.com\/markets\/imf-issues-global-stagflation-alert-cuts-global-gdp-it-warns-rising-inflation-and-dangerous\">IMF Issues Global Stagflation Alert: Cuts Global GDP As It Warns Of Rising Inflation And &#8220;Dangerous Divergence&#8221;<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__38L44\">\n<div class=\"NodeContent_body__2clki NodeBody_container__1M6aJ\">\n<p>In its latest World Economic Outlook\u00a0<a href=\"https:\/\/www.imf.org\/en\/Publications\/WEO\/Issues\/2021\/10\/12\/world-economic-outlook-october-2021\">report published on Tuesday morning<\/a>, the International Monetary Fund\u00a0<strong>voiced its starkest caution about stagflation yet,\u00a0<\/strong>warning that the global economic recovery has lost momentum and become increasingly divided, even as it warned about rising inflation risks.<\/p>\n<p>The fund warned threats to growth had increased, pointing to the delta variant, strained supply chains, accelerating inflation and rising costs for food and fuel. As a result, the IMF trimmed its global growth forecast and now expects world GDP to rise 5.9% this year, down 0.1% from what it anticipated in July and a bounce from the 3.1% contraction of 2020. The 2022 forecast was unchanged at 4.9%.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/imf%20gdp%20forecasts%202022.jpg?itok=5uAD8JJo\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/imf%20gdp%20forecasts%202022.jpg?itok=5uAD8JJo\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/imf%20gdp%20forecasts%202022.jpg?itok=5uAD8JJo\" alt=\"\" width=\"500\" height=\"346\" data-entity-type=\"file\" data-entity-uuid=\"2bfa6210-c87d-49bd-bfbf-6b3899fa84af\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<div class=\"Advert_desktop__1J5vD Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-video\" class=\"Advert_verticallySpaced__wnPy3\" data-google-query-id=\"CMGq1tr_xPMCFZLuhwodmhEOUw\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_0__container__\">The IMF also cautioned that this modest headline revision <strong>&#8220;masks large downgrades for some countries&#8221;\u00a0<\/strong>adding that &#8220;<strong>the outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics.\u00a0<\/strong>The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions. Partially offsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices. Pandemic-related disruptions to contact-intensive sectors have caused the labor market recovery to significantly lag the output recovery in most countries.&#8221;<\/div>\n<\/aside>\n<\/div>\n<p>Pointing to this &#8220;dangerous divergence&#8221; in economic prospects across countries, the IMF said that this remains &#8220;a major concern.&#8221; And while the IMF trimmed its growth outlook, it also warned that the global economy is entering a phase of inflationary risk, and called on central banks to be\u00a0<strong>\u201cvery, very vigilant\u201d\u00a0<\/strong>and take early action to tighten monetary policy should price pressures prove persistent.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/headline%20inflation%20oct%2012.jpg?itok=o1b9TLLH\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/headline%20inflation%20oct%2012.jpg?itok=o1b9TLLH\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/headline%20inflation%20oct%2012.jpg?itok=o1b9TLLH\" alt=\"\" width=\"500\" height=\"342\" data-entity-type=\"file\" data-entity-uuid=\"72f59d62-750b-4488-8273-5d68044c3adc\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>IMF Issues Global Stagflation Alert: Cuts Global GDP As It Warns Of Rising Inflation And &#8220;Dangerous Divergence&#8221; In its latest World Economic Outlook\u00a0report published on Tuesday morning, the International Monetary Fund\u00a0voiced its starkest caution about stagflation yet,\u00a0warning that the global economic recovery has lost momentum and become increasingly divided, even as it warned about rising [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[418,426,434,3303,4318],"class_list":["post-59845","post","type-post","status-publish","format-standard","hentry","category-economics","tag-imf","tag-inflation","tag-international-monetary-fund","tag-stagflation","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59845"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59845\/revisions"}],"predecessor-version":[{"id":59846,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59845\/revisions\/59846"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}