Jakarta, CNBC Indonesia – Germany and Italy will be the two countries that go into recession next year. This was announced by the International Monetary Fund (IMF) in its latest version, Tuesday (11/10/2022).
“Germany and Italy will enter recession next year, becoming the first developed economies to contract after the Russian invasion of Ukraine,” the IMF wrote in its updated World Economic Outlook.
The German economy will contract by 0.3%. While Italy will contract 0.2%.
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Germany, Europe’s largest economy, has paid dearly for its heavy dependence on Russian gas. Although this energy source was completely cut off by the Kremlin in response to Western sanctions against Russia for the attack on Ukraine.
Italy itself, its industry is also very dependent on gas imports. The sharp decline in growth has also occurred since July.
At the same time, the IMF has also lowered its forecast for 2023 as countries are still grappling with the impact of the Russian attack on Ukraine, rising cost of living and economic recession. 2023 global GDP at 2.7%, down 0.2 points from July expectations.
This is the weakest growth profile since 2001. While the global growth forecast for this year remains unchanged at 3.2%
“This year’s shock will reopen the economic wounds that have only partially healed after the pandemic,” said IMF economic adviser Pierre-Olivier Gourinchas.
“More than a third of the global economy is set to contract this year or next year and the three largest economies – the United States, the European Union and China – will continue to stall,” he added.
“The worst is yet to come and, for many, 2023 will look like a recession.”
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