This will be a tough year for much of the global economy as the US, EU and China economies are all slowing down simultaneously. “We expect a third of the global economy to be in recession. Hundreds of millions of people will feel like they’re in recession, even in countries that aren’t.”
IMF Economic Forecasts for 2023
International Monetary Fund (IMF) Managing Director Kristalina Georieva shared the IMF’s forecasts for the US, EU, China and global economies in the following interview. . Airs on CBS, Sundays. More about her:
Here’s what she looks like in 2023. It will be a tough year for most of the global economy. why? Because her three largest economies – the US, the EU and China – are all slowing down at the same time.
“The United States is the most resilient. The United States may avoid a recession. The labor market remains very strong. This is a mixed blessing as the economy may need to keep interest rates tighter longer to keep inflation under control.
“The EU has been hit very hard by the war in Ukraine. Half of the European Union will go into recession next year, and China will slow further this year,” she added.
Furthermore, the IMF boss said:
Next year will be a tough year for China. And that leads to negative trends globally.
“The situation is even more dire when we look at emerging markets in the developing world. Why? For us, this is devastation,” she warned.
Regarding China in particular, Georgieva explains: China has slowed dramatically in 2022 due to this draconian zero Covid policy. For the first time in 40 years, China’s growth rate in 2022 is likely to fall below the global growth rate. That has never happened before.”
The IMF Managing Director emphasized that he hoped the US economy would not “go into a recession despite all these risks,” stating: said to
She of the global economy slips into recession by a third…even countries that are not in recession will feel like recessions for hundreds of millions of people.
“The world has changed dramatically,” added Georgieva, noting that “it has become a shockable world.” These shocks, she explained, include Covid, the war between Russia and Ukraine, and the cost of living crisis.
“My message is that we do not believe in a return to pre-Covid predictability. Increasing uncertainties and overlapping crises await us… We have to sit back and act in a more agile and proactive way,” she concluded.
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