In its World Economic Outlook published on Tuesday, the International Monetary Fund said that it lowered its 2021 global growth forecast to 5.9% from 6% in July due to supply disruptions in advanced economies, per Reuters.

Additional takeaways

"2022 global growth forecast unchanged at 4.9%."

"US 2021 growth forecast cut by 1 percentage point from July forecast; German growth cut by 0.5 points, Japan's growth cut by 0.4 points."

"China's 2021 growth forecast cut to 8.0% from 8.1% in July due to faster scaleback of public investment."

"2021 outlook for some low-income developing countries cut due to worsening COVID-19 dynamics; some commodity exporters upgraded on higher prices."

"Growth risks tilted to the downside, including possible emergence of new coronavirus variants, more persistent supply-demand mismatches, inflation pressures."

"Price pressures could prompt faster monetary policy normalization and tighter financial conditions, hurting emerging markets."

Market reaction

This publication doesn't seem to be having a significant impact on risk sentiment. As of writing, the S&P Futures were up 0.16% on the day.