Third of the global economy will be in recession this year, says IMF chief

Headquarters of the International Monetary Fund, Washington, DC. [Photo: Wikimedia]

The IMF (International Monetary Fund) chief Kristalina Georgieva has said that a third of the global economy will be in recession this year.

The chief warned that 2023 will be “tougher” than last year as the US, EU (European Union) and China will see their economies slow down, PTI reported.

Georgieva made these grim assertions on Sunday during a CBS news programme “Face the Nation.”

It comes at a time when the ongoing conflict in Ukraine shows no signs of abating after more than 10 months, with spiralling inflation, higher interest rates and the surge in coronavirus infections in China fuelled by the Omicron variant, the report said.

“We expect one-third of the world economy to be in recession,” Kristalina Georgieva said on the news programme.

The year 2023 will be tougher than last year because the economies of the US, the EU and China will slow down, she was quoted as saying.

“Even in countries that are not in recession, it would feel like a recession for hundreds of millions of people,” she explained.

In October last year, the IMF trimmed its growth forecast for 2023.

“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 pandemic,” IMF had said.

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