IMF Warns of Economic Challenges as Pandemic Persists

Washington DC –The IMF released its World Economic Outlook Update forecasting a global economic downgrade and persisting challenges to the global economy.

Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert releases the following statement on the IMF World Economic Outlook Update:

"As the pandemic continues the IMF again has downgraded its outlook on the global economy.

“The big story emerging from the IMF’s report is that variants like Omicron will continue to disrupt the global economy.

"Both China and the United States face growing challenges and slower growth.

"The report highlights that less stimulus and no Build Back Better legislation not only negatively impacts the US economy, it also hurts the world economy.

"The biggest concern for global growth remains the emergence of new COVID variants.

"There is a direct correlation to new coronavirus variants with supply chain shocks, shortages and higher inflation.

"Rising food prices and higher import prices are impacting developing countries and increasing poverty.

"Many developing countries are facing prolonged crisis as they lose revenue and wrestle with debts they cannot pay.

“With interest rates rising in major economies, it means that developing countries will face higher debt payments. Debt relief for developing countries is needed as quickly as possible.

"We need to increase access to vaccinations and stimulus for developing countries as the crisis worsens in too many of these countries.

"The IMF continues to highlight the risks of climate change and urges action to stop the long-term economic risks that countries face beyond the pandemic."

Read the IMF's World Economic Outlook Update here.

Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org