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International Monetary Fund (IMF) head: “Omicron spread, global economic growth outlook likely to be downgraded”

Kristalina Georgieva, President of the International Monetary Fund (IMF)

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(Seoul = Yonhap News) Reporter Cha Byeong-seop = International Monetary Fund (IMF) President Kristalina Georgieva predicted that the global economic growth forecast would be lowered due to the spread of Omicron, a new variant of the novel coronavirus infection (COVID-19).

According to Reuters and Bloomberg News on the 3rd (local time), Georgieva attended a conference on the global economy on the 3rd (local time) and said, “The rapidly spreading new mutation will undermine confidence. There is,” he said.

The International Monetary Fund (IMF) slightly lowered its global economic growth forecast for this year from 6.0% to 5.9%, reflecting the re-spread of COVID-19 and disruptions in the supply chain in its economic forecast released in October. At that time, the IMF’s forecast for economic growth for next year was 4.9%.

He said that even before the advent of the Omicron mutation, he was concerned about the slowdown in the momentum of global economic growth due to the Corona 19 delta mutation.

Georgieva said, “The problem of a widening gap between some countries that are recovering quickly from the pandemic and those that are not able to do so, existed before Omicron, and now it is fixed.”

He said he was concerned about the ability of low-income countries to repay debt, exacerbated by the coronavirus crisis, and said that 60% of the world’s poorest countries are at risk of failing to pay their debts.

“As the debt of countries soars due to the pandemic, next year will be a very difficult year with debt repayment issues,” he predicted.

bscha@yna.co.kr