Global economic growth prospects are holding strong for this year and next, despite a significant majority of economists in Reuters polls warning new variants of the coronavirus pose the biggest risk to that outlook.
The global economy was now forecast to expand a sizzling 6.0% this year, which would be its fastest in nearly half a century, followed by a still-robust 4.5% in 2022. Both were marginal increases from the April poll.
Financial markets are on edge ahead of the U.S. Federal Reserve's meeting this week, where policymakers are grappling with increased coronavirus infections and a disrupted global supply chain that could induce more price pressures.
In China, the world's second biggest economy, economic growth likely slowed sharply to 8.1% in the second quarter from a record 18.3% in January-March as new COVID-19 outbreaks have weighed on consumer spending.
Economists expected Australia's resource-heavy economy to take a hit this quarter from renewed lockdown restrictions and India's economic rebound was also predicted to lose momentum.
Brazil's economy was forecast to extend its "jobless recovery" after this year's inflation surge, while prospects for growth in Mexico looked brighter.
Reference: Reuters
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