This year, a third of the world is in a recession, the IMF chief says

Date:

This year, a third of the world is in a recession, the IMF chief says

  • news by AUN News correspondent
  • Monday, January 02, 2023
  • AUN News – ISSN: 2949-8090

Summary:

  • According to the International Monetary Fund’s (IMF) chief, this year will see a third of the world’s economy in a recession.

  • As the economies of the US, EU, and China slump, 2023 will be “tougher” than last year, according to Kristalina Georgieva.

  • The global economy is currently being weighed down by the conflict in Ukraine, rising costs, higher interest rates, and the expansion of COVID in China.

  • The IMF revised its forecast for 2023 global economic growth in October.

  • In January, China will reopen to the outside world.

According to the International Monetary Fund’s (IMF) chief, this year will see a third of the world’s economy in a recession.

As the economies of the US, EU, and China slump, 2023 will be “tougher” than last year, according to Kristalina Georgieva.

The war in Ukraine, rising prices, higher interest rates, and the growth of COVID in China are all putting pressure on the world economy right now.

The IMF revised its forecast for 2023 global economic growth in October.

On the CBS television show Face the Nation, Ms. Georgieva stated, “We predict one-third of the world economy to be in recession.”

“For hundreds of millions of people, it would feel like a recession, even in nations that are not experiencing one,” she continued.

  • In January, China will reopen to the outside world.

  • Why is the IMF critical, and what does it do?

In October, the IMF lowered its prediction for global economic growth in 2023 because of the war in Ukraine and higher interest rates, which central banks are using worldwide to fight inflation.

Since then, China has given up on its “zero COVID” policy and started to reopen its economy, even though coronavirus infections have spread globally since then.

China, the second-largest economy in the world, would likely have a difficult start to 2023, Ms. Georgieva predicted.

She said that the next few months would be hard for China, which would hurt the country’s progress and the progress of the region and the world as a whole.

190 nations make up the IMF, an international organization. They cooperate to stabilize the world economy. Being a system for early economic warning is one of its most essential functions.

Data made public over the weekend indicated that the Chinese economy would be weak toward the end of 2022.

The official purchasing managers’ index (PMI) for December showed that factory activity in China dropped for the third straight month and at the fastest rate over the past three years as coronavirus infections spread throughout the country’s factories.

A survey by China Index Academy, one of the country’s largest independent real estate research businesses, found that housing prices in 100 cities dropped for the sixth month in a row in the same month.

As China starts a “new chapter,” President Xi Jinping made his first public comments since the policy change on Saturday. In those comments, he asked for more effort and cooperation.

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