2023 will be tougher than last year as the economies of the US, EU and China slow down. One third of the world economy will be in recession this year. International Monetary Fund (IMF) head Kristalina Georgieva told CBS News.
The war in Ukraine, rising prices, higher interest rates and the spread of the covid-19 disease in China will negatively impact the economy, Georgieva said. Last October, the IMF lowered its global economic growth outlook for 2023 for the fourth time since January 2022.
“We expect one third of the world economy to be in recession,” Georgieva said. According to her, hundreds of millions of people in countries that aren’t technically in recession will also feel like they’re in a recession.
In October, the IMF downgraded the global economy’s growth outlook for this year to 2.7% due to the war in Ukraine and higher interest rates. Since then, China has abandoned its zero-tolerance policy towards covid-19 and started reopening its economy, even as the country’s contagion has spread rapidly. The economy is expected to grow by 3.2% last year.
