We estimate, however, that real marginal costs of net importers are still relatively low, and that importers will be able to offset a major part of the growth in import costs by cutting their margins.
Furthermore, it sees only a mild recovery ahead, to 2.8% by 2021. Revisions to this year’s forecasts are broad-based, across both advanced and emerging economies. Private sector consensus forecasts have similarly been scaled down in recent months. In some countries, a moderation was expected after the strong momentum observed in late 2017 and early 2018.