IMF delays release of new forecast to January 25 to factor in COVID-19 developments

The International Monetary Fund’s spokesperson has said on Tuesday that the World Economic Outlook would be released on Jan. 25, a week later than anticipated, to take into account the latest COVID-19 developments, amid concerns that another downgrade is on the way.

“The World Economic Outlook update will be launched on January 25 to allow our teams to incorporate the latest developments related to the COVID-19 pandemic into the economic forecasts," the spokesperson said.

IMF spokesperson Gerry Rice last month told reporters to expect the update on Jan. 19.

Last month, IMF Managing Director Kristalina Georgieva told the Reuters Next conference that the IMF was likely to lower its global economic growth forecasts in January due to the appearance of the Omicron variant of coronavirus.

In October, the IMF had forecast global economic growth of 5.9% in 2021 and 4.9% this year, while underscoring the uncertainty posed by the new coronavirus variants.

In the last two years, the coronavirus has killed roughly 5.8 million people throughout the world. 

Economists anticipate the IMF to lower its economic projection for the United States, the world's largest economy, given the rapid spread of the highly contagious Omicron variety and Congress' inability to enact President Joe Biden's $1.2 trillion social and climate spending plan, .

In October, it had already slashed its forecast for U.S. Gross Domestic Product growth in 2021 by a full percentage point to 6%, citing supply chain disruptions and a labor crunch, while forecasting growth of 5.2% in 2022.

Since then, the pandemic has surged again, and divisions in Congress have deepened.

According to a Reuters analysis, the United States established a global record of over 1 million new coronavirus infections on Monday, and its daily average has totaled 486,000 cases over the previous week, a pace higher than any other country.