First Published Jan 3, 2023, 2:59 PM IST
International Monetary Fund Director Kristalina Georgieva has warned that a third of the world’s countries will face recession by 2023.
The IMF has warned that the year 2023 will be very challenging, especially for the US, China and European countries due to the corona virus, Russia-Ukraine war.
This is not the first time that the International Monetary Fund has predicted the global economy, they had warned the same in October last year.
Kristalina Georgieva, Director of the International Monetary Fund (IMF), said in an interview with the CBS news program “Bas the Nation”:
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The ongoing war between Ukraine and Russia and the increasing spread of Corona virus in China will affect the economy in 2023.
By 2023, one-third of the world’s countries will be affected by economic recession. Even if countries do not experience economic recession, millions of people will feel the recession. Continued war and the spread of the worst virus will plunge the world into economic recession.
China, the world’s 2nd largest economy, will have economic growth although it will be below the global average.
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If China achieves the set growth target, Beijing’s growth rate will fall below normal for the first time in 40 years. President Xi Jinping’s easing of corona restrictions could be a major reason for the economic turmoil in China.
The next 2 months will be very difficult for China, it will affect China’s growth and bring the country’s economic growth to negative, China’s impact will reverberate in the Asian region and the world and there will be a negative trend there.
The growth of the global economy has slowed down from 6 percent in 2021 to 3.2 percent in 2022. It will further decrease to 2.7 percent in 2023. This is the first time since 2001 that global economic growth has been so weak
Kristalina Georgieva said
Last Updated Jan 3, 2023, 2:59 PM IST