IMF Cuts Global Growth Forecast, Warns on Inflation

WASHINGTON—Supply-chain disruptions and global health concerns spurred the International Monetary Fund to lower its 2021 growth forecast for the world economy, while the group raised its inflation outlook and warned of the risks of higher prices.

In the IMF’s latest World Economic Outlook report, released Tuesday, economists cited the spread of the Covid-19 Delta variant and said the foremost policy priority is to vaccinate an adequate number of people in every country to prevent dangerous mutations of the virus. They stressed the importance for major economies to fulfill pledges to provide vaccines and financial support to international vaccination efforts before new variants knock a tenuous recovery off track.