One-Third Of Global Economy Will Face Recession In 2023 — IMF

The International Monetary Fund (IMF) managing director, Kristalina Georgieva, has warned that a third of the global economy will face recession this year.

Georgieva said economic activities in the United States, the European Union, and China are all slowing simultaneously.

“We expect one-third of the world economy to be in recession,”

“Half of the European Union will be in a recession this year.”

She further explained that the rapid spread of Covid-19 in China, especially now that the government has dropped its strict containment policy, means the country faces a fresh economic blow in the short term.

Adding that the next couple of months will be “tough for China” due to the spread of the deadly virus.

The projection of the IMF boss aligns with that of Goldman Sachs, a multinational investment bank, that global economic growth will slow to 1.8 percent in 2023.

The IMF had, in October, cut its 2023 outlook for global economic growth, citing the continuing drag from the war in Ukraine and inflation pressures and interest rate hikes by major central banks.

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