The managing director of International Monetary Fund (IMF), Kristalina Georgievapredicted this Sunday in Washington that “a third of the world economy will be affected by the recession during 2023” and warned that “for all countries this year will be hard, especially for countries with high levels of debt.”
In a report given to the CBS chain in the United States, Georgieva maintained that “China, for the first time in 40 years, will grow at par with or below the growth of the world economy, as a consequence of its health policy against Covid-19. 19”.
The head of the IMF emphasized that “the United States, the European Union and China are slowing down simultaneously and We expect a third of the world economy to be in recession.”
“Over the next few months, it would be difficult for China due to the severe sanitary restrictions and the impact on Chinese growth would be negative, the impact on the region would be negative and the impact on global growth would be negative”said the managing director of the IMF.
Regarding the war in Ukraine, Georgieva pointed out that all efforts are being made so that the Ukrainian economy does not collapse and that, despite the destruction of that nation’s infrastructure, the agency is prepared to provide its help. “Ukraine is not going to collapse,” Georgieva said.
Georgieva pointed out that “Half of the European Union will be in recession already this year. The United States is more resilient, they could avoid recession. The US economy is remarkably resilient and is likely to escape the worst of the recession, thanks in part to its strong labor market.” “China is slowing and could enter a recession next year and grow less than the world average. That has never happened before and means it could drag down global economic activity rather than boost it,” she added.
The IMF official stated that “this environment it will also affect developing countries and emerging countries because the rise in interest rates in the United States and the appreciation of the dollar will affect their exports”, while warning that “this recession will be devastating for highly indebted countries”.
The IMF cut its growth projections last October when it updated its World Economic Outlook report for 2023.
Now it is estimated that the IMF will cut its forecasts again this month during the World Economic Forum that will take place at the end of the month in Davos, Switzerland.
