The head of the IMF (International Monetary Fund) predicted that a third of the world’s economy will be in recession this year and warned that 2023 will be ‘tougher’ than last year as the US, EU (European Union), and China’s economies will slow down.
IMF Director Kristalina Georgieva delivered these sombre statements on Sunday during the CBS news programme ‘Face the Nation.’ It occurs at a time when the current conflict in Ukraine, which has lasted for more than ten months, is showing no signs of ending, as well as when there is a spike in coronavirus infections in China due to the Omicron strain, spiralling inflation, and increased interest rates.
According to Kristalina Georgieva, who spoke on the news programme, ‘we anticipate that one-third of the global economy will be in recession.’
Because of the weakening economies of the US, the EU, and China, she predicted that 2023 will be more difficult than last year.
‘For hundreds of millions of people, it would feel like a recession even in nations that are not experiencing one,’ she said.
The IMF revised its 2023 growth projection downward in October of last year.
‘Global growth is anticipated to decline from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. With the exception of the global financial crisis and the acute period of the COVID-19 epidemic, this is the lowest growth profile since 2001’ It read.
‘It will be difficult for China over the coming months, and this will have a detrimental effect on the country’s progress as well as that of the region and the entire world,’ she continued.
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