When asked to comment on the implications of the spread of the new strain for the global economic outlook, she said: "Let’s be very frank, a new variant that may spread very rapidly, can dent confidence, and in that sense, we are likely to see some downgrades of our October projections for global growth."
That said, IMF Managing Director noted that "even before the arrival of this new variant" the Fund was concerned that "the recovery, while it continues, is losing some momentum because of slowdown in the two countries that are engines for growth - in the US and in China, and because the Delta variant proved to be a disrupter, it caused some additional delays in production."
Moreover, "divergence between countries recovering faster and those falling behind is more entrenched," Georgieva added.
