The world economy is expected to be in recession in 2023, says IMF

Economy

2-01-2023, 20:45

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INA – SOURCES

The International Monetary Fund’s – IMF chief, Kristalina Georgieva warned that this year is going to be tougher on the global economy than the one we have left behind.

“Why? Because the three big economies, US, EU, China, are all slowing down simultaneously,” she said.

She noted, “We expect one-third of the world economy to be in recession,” adding that even for countries that are not in recession, “it would feel like a recession for hundreds of millions of people.”

While the US may end up avoiding a recession, the situation looks bleaker in Europe, which has been hit hard by the war in Ukraine, she highlighted, saying “Half of the European Union will be in recession.”

The IMF currently projects global growth to be at 2.7% this year, slowing from 3.2% in 2022.