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Global economy 'nowhere close' to stagflation: IMF chief economist

Downside risks persist, but economic growth still resilient, says Gopinath

International Monetary Fund Chief Economist Gita Gopinath says inflationary pressures will mostly normalize by next year.   © Reuters

WASHINGTON -- The International Monetary Fund recently trimmed this year's global economic forecast as supply chain disruptions and inflation weigh down the recovery from the coronavirus pandemic.

But conditions are "nowhere close" to the 1970s-style stagflation, when stubbornly slow economic growth combines with high inflation, Gita Gopinath, the IMF's chief economist, told Nikkei. Although the global economy faces downside risks, inflation rates are expected to return to normal in the near term.

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