This year, one in three countries is likely to experience a recession. That’s because the three major blocs – the US, the EU and China – are facing economic headwinds. This year will therefore be heavier than 2022. Kristalina Georgieva, IMF top woman, told the American news channel CBS.
The US and the EU are grappling with the aftermath of the war in Ukraine and high inflation. Central banks are therefore raising interest rates to curb consumer spending and business investment. This should curb inflation, but also slow down economic growth.
China is currently experiencing a strong upsurge of the coronavirus. The number of infections is increasing very rapidly there which is hampering the economy of the country. The IMF forecasts that China will grow slower than the global average in 2023 for the first time in forty years.
Since all the big blocks are dealing with problems, the rest of the world will notice as well, thinks the IMF point woman. You didn’t mention any data on economic expectations at CBS. The IMF is likely to announce it later this month.
Last month, the organization was already gloomy about the Dutch economy, which is expected to barely grow in 2023. That’s partly due to continued inflation. And although the Netherlands has enough energy reserves to keep the country running, it could be that shortages elsewhere in the EU exacerbate the energy crisis in our country.
