IMF believes one-third of the global economy will be in recession by 2023

By: News Team

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IMF believes one-third of the global economy will be in recession by 2023

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that “a third of the world economy” will be in recession this year, including “half of the European Union”.

In an interview on CBS collected by EFE, Georgieva has assured that “for the majority of the world (2023) is going to be a hard year, harder than the one we left behind”, since the three large economies – the United States, European Union and China – “are slowing down simultaneously”.

In fact, it predicts that half of the countries of the European Union, whose economy is “severely impacted” by the war in Ukraine, will enter into recession in 2023.

Instead, the managing director sees the U.S. economy as more “resilient” and is confident that the strength of its labor market will help it “avoid recession” and even “sustain the world in a very difficult year.”

With regard to China, the effects of its zero covid policy will lead its economic growth to be “equal to or below” the world rate, which will have a negative impact on its economy, that of the region and the world.

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