The IMF Chief projected that this year will witness a third of the world’s countries in recession and warned that 2023 will be “tougher” than last year due to the slowing of the economies of the US, EU, and China.
The Chief of the International Monetary Fund (IMF), Kristalina Georgieva, delivered these sobering statements on Sunday during the news programme “Face the Nation.” It occurs at a time when the current conflict in Ukraine, which has lasted for more than ten months, is showing no signs of ending, as well as when there is a spike in coronavirus infections in China due to the Omicron strain, spiralling inflation, and increased interest rates.
“We expect one-third of the world economy to be in recession. Even in countries that are not in recession, it would feel like a recession for hundreds of millions of people,” she explained.
“Global growth is forecast to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic,” the IMF stated in October 2022.
After a surge of anti-government protests, China abandoned its zero Covid policy and liberalised its economy. It will be difficult for China over the coming months, and this will have a detrimental effect on the country’s progress as well as that of the region and the entire world, she continued.