IMF worries vaccine leading to economic disparity2021|01:15
The global economic recovery is taking different paths - with higher vaccination rates boosting economic growth in wealthy economies like the U.S., but low vaccination rates are leaving developing and lower-income economies behind. That's the view of the International Monetary Fund on Tuesday, which updated its forecast for this year and next. Overall, the IMF held its global economic growth forecast for the year at 6 percent. It upgraded forecasts for major rich nations but downgraded prospects for other parts of the world. For example, the IMF cut its outlook for India to 9.5 percent as that country struggles with a massive wave of infections this year. The IMF also lowered China's growth outlook, but for a different reason. It cites the Chinese government's decision to scale back public investment and overall fiscal support. As for the U.S. - The IMF raised its economic growth forecast to 7.0 percent for 2021 and 4.9 percent for 2022. But the IMF warned the U.S. forecasts could be at risk if a prolonged surge in inflation prompts the Federal Reserve to scale back its assistance and if President Biden doesn't get his massive infrastructure plans through a divided Congress.