According to the International Monetary Fund’s (IMF) head, this year will see a third of the world’s economy in a recession.
As the economies of the US, EU, and China slump, 2023 will be “tougher” than last year, according to Kristalina Georgieva.
The global economy is currently being weighed down by the conflict in Ukraine, rising costs, higher interest rates, and the expansion of Covid in China.
The IMF revised down its forecast for 2023 global economic growth in October.
In an interview with CBS News’ Face the Nation, Ms. Georgieva stated that:
“We expect one-third of the world economy to be in recession.
Even countries that are not in recession, it would feel like a recession for hundreds of millions of people,” she iterated.
Meanwhile, an economist at Moody’s Analytics in Sydney named Katrina Ell provided the BBC with her analysis of the global economy.
“While our baseline avoids a global recession over the next year, odds of one are uncomfortably high. Europe, however, will not escape recession and the US is teetering on the verge,” she emphasized.
In October, the IMF revised down its forecast for global economic growth in 2023 as a result of the conflict in Ukraine and higher interest rates as central banks around the world work to contain inflation.
Since that time, despite the massive spread of coronavirus infections in the nation, China has abandoned its zero-Covid policy and begun to reopen its economy.
China, the second-largest economy in the world, would likely have a difficult beginning to 2023, Ms. Georgieva predicted.
“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative,” she pointed out.
Conclusion
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