London, Monday, 02 January 2023
According to the IMF chief, a third of the world's economy will be in recession this year, and 2023 will be "tougher" than last year as the economies of the United States, the European Union, and China slow down.
These sombre statements were delivered on January 1 on the CBS television show "Face the Nation" by Kristalina Georgieva, the IMF's chief.
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.
On the television broadcast, Ms. Georgieva stated, "We anticipate that one-third of the global economy will be in recession.
Because of the slowdown in the economy of the US, the EU, and China, she predicted that 2023 would be more difficult than the previous 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.
"According to projections, global growth will drop 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.
After a surge of anti-government protests, China abandoned its zero-Covid policy and liberalised its economy.
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.
(Report by: The Decision Maker - Finance editors)
(Picture by: Wikipedia)