Jakarta –
Chief Executive Officer of the International Monetary FundIMF), Kristalina Georgieva reminded that the global economy in 2023 will be more difficult than in previous years.
“We estimate that a third of the world economy will experience a recession. Why? Because the three major economies, the United States, the European Union and China, are all slowing down at the same time,” Georgieva said, quoted by Bloomberg on Monday (02 /01/2022).
Earlier last October, the IMF warned that more than a third of the global economy would contract and there was a 25% chance that world GDP would grow by less than 2% in 2023. This situation is called a recession global.
In addition, he also described the conditions of the three largest economies. According to him, the US can avoid a recession. Then for the European Union, next year half of the continent will be in recession. As for China, the country will have a difficult year.
China’s Zero COVID policy move has implications for the country’s economic activity which moves at the slowest pace since last February 2020, when the virus first struck, according to data released on Saturday.
Georgieva said the slowdown in the world’s major economies will eventually translate into a negative trend on a global scale. In fact, you said, the picture will be much worse for developing country markets.
The Purchasing Managers Index (PMI) for manufacturing released on Monday showed negative results in Europe, Turkey and South Korea. Meanwhile, data released tomorrow Tuesday will reveal not much different figures for Malaysia, Taiwan, Vietnam, the UK, Canada and the United States.
On the other hand, Georgieva said, the prospect of the world’s largest economies could help bring relief to the world economy.
“If the resilience of the US labor market holds up, the US will help the world get through a very difficult year,” Georgieva said.
(hns/hns)
