Pandemic's Summer Resurgence Is Slowing the Global Economic Recovery

©iStock/Jira Pilankharom

Data over the past week captured a worldwide weakening as infections from a Delta surge hit travel and spending and worsen supply bottlenecks that are dampening manufacturing and trade.

Instead of entering the final months of 2021 confident that the acute phase of the pandemic is over, it’s becoming clear that booster shots may be needed for fading vaccines, workplace re-openings will be delayed and border closures remain.

“The spread of the delta variant is slowing the reopening process and has caused us to mark down growth globally,” said Robin Brooks, chief economist of the Institute of International Finance in Washington, referring to its revised 5.7% forecast for this year, from 6.2%.

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