The International Monetary Fund has lowered its forecast for global growth to 5.9 percent. IMF economists cited persistent threats to the world economy, including the spread of the coronavirus Delta variant.
The economists said Tuesday that turbulence in wealthy nations has begun to weigh on their global outlook. They pared back their projections for US growth from 7 percent to 6 percent.
The analysts said reductions in public spending were among the factors that prompted them to change their forecast for China to 8 percent. They pointed to the economic impact of pandemic restrictions in projecting growth in Japan of 2.4 percent.
The economists left their outlook for global growth next year unchanged, at 4.9 percent. They expect inflation will return to pre-pandemic levels. They warned policymakers to be ready to respond.