The IMF warns a difficult year for the global economy, citing a slowdown in the United States, the EU and China Economics
The IMF warns a difficult year for the global economy, citing a slowdown in the United States, the EU and China Economics
The International Monetary Fund (IMF) has warned that 2023 will become a more difficult year for most of the global economy, since the economy in the United States, the EU and China slowed down at the same time. "We expect a third of the global economy to be in a recession ... Even in countries that are not in a recession, it would feel like a recession for hundreds of millions of people," said IMF leader Kristalina Georgieva.
Wirtschaft forecasts of the IMF for 2023
The managing director of the International Monetary Fund (IMF), crystalina Georgieva, shared the predictions of the IMF to the USA, the EU, the EU, China and the global economy in an interview with CBS that was broadcast on Sunday. She stated:
We see that in 2023. For most of the global economy, this will be a tough year, harder than the year we leave behind. Why that? Because the three major economies the USA, EU, China are all slowing down at the same time.
"The United States is most resistant. The United States could avoid a recession. We see that the labor market remains quite strong. However, this is a mixed blessing, because if the labor market is very strong, the Fed may have to keep interests tight to lower inflation," continued the IMF boss.
"The EU was hit very difficult by the war in Ukraine. Half of the European Union will be in a recession next year. China will continue to slow down this year," she added.
In addition, the IMF boss said:
Next year will be a hard year for China. And that leads to negative trends worldwide.
"If we look at the emerging markets in developing countries, the picture there is even darker. Why that? Because on top of that they are hit by high interest and upgrading the dollar. For the economies with a high level, this is a devastation," she warned.
Especially in relation to China, Georgieva described: "In the short term, China slowed down dramatically in 2022 due to this strict zero-covide policy. For the first time in 40 years, China's growth will probably correspond to or lie below."
The Managing Director of the IMF emphasized that she hoped that the US economy will not "slide into a recession despite all these risks," said the IMF managing director with:
We expect a third of the global economy to be in a recession ... Even in countries that are not in a recession, it would feel like a recession for hundreds of people.
Georgieva added that "the world changed dramatically" and noticed that "it is a more shocking world". She explained that this shocks covid, the Russia-Ukraine War and the cost of living.
"My message [is] does not believe that we will return to covid. More uncertainty, more crisis overlap are waiting for us ... We have to struggle up and act on this more agile, preventive way," she concluded.
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