"Recent data confirms continuing global recovery from the COVID-19 crisis but economic outlook remains hard and prone to setbacks".
"While global economic activity has picked up since June, there are signs that the recovery may be losing momentum, and the crisis is likely to leave deep, unequal scars", said the Washington, D.C. -based fund in its latest report.
The United Kingdom, Germany and France as well as parts of the USA and Australia are among the countries with new curbs on movement and businesses to contain the pandemic's spread. They're not as stringent as the lockdowns imposed earlier in the year, but are still enough to damage growth.
"The recovery is uneven, highly uncertain and subject to elevated downside risks including those arising from renewed virus outbreaks in some economies", the G-20 said in a draft communique seen by Bloomberg. In this regard, we welcome the CBE's recent interest rate cuts to further support economic recovery amid muted inflation.
IMF Managing Director Kristalina Georgieva said in a note prepared for a virtual meeting of the leaders of the Group of 20 major economies that significant progress on the vaccines raised "hopes of vanquishing the virus that has taken more than a million lives and caused tens of millions of job losses" around the world. "But the resurgence in infections in many economies shows just how hard and uncertain this ascent will be".
The IMF is urging governments and central banks not to prematurely withdraw policy support.
But talks over another stimulus package among United States politicians seem to have stalled and some previous measures are set to expire.
Last month, the International Monetary Fund forecast that the global economy would contract by a historic 4.4 percent this year and then mount a partial and uneven recovery, with global growth rebounding by 5.2 percent next year.