Epidemic, Fragmentation, Inflation(3)

Epidemic, fragmentation, inflation(3)

IMF data show that as of mid-July, nearly 40% of the population in developed economies have completed the new crown vaccination, about 11% of the population in emerging economies have completed the vaccination, and the proportion of people in low-income economies who have completed the vaccination is only 1%.

The IMF pointed out that vaccine access has formed a major "fault line", dividing the global economic recovery into two camps: developed economies with high vaccination rates are expected to further return to normal economic activities later this year; economies with vaccine shortages will continue Facing the severe challenge of the new increase in the number of new crown infections and the rise in deaths.

At the same time, the different levels of policy support have also exacerbated the divergence of economic recovery. Gopinath pointed out that at present, advanced economies are still preparing to introduce trillions of dollars in fiscal support measures while maintaining ultra-loose monetary policies; while most of the fiscal support measures introduced by emerging markets and developing economies have expired and are beginning to seek reconstruction. As a fiscal buffer, the central banks of some emerging economies such as Brazil and Russia have begun to raise interest rates to curb inflation.