For much of the global economy, 2023 is going to be a tough year as the main engines of global growth – the United States, Europe and China – all experience weakening activity, International Monetary Fund Managing Director Kristalina Georgieva said yesterday.
The new year is going to be “tougher than the year we leave behind,” Georgieva said on the CBS yesterday morning news program “Face the Nation.”
“Why? Because the three main economies – the U.S., EU and China – are all slowing down simultaneously,” she said.
Recall that in October 2022, the IMF lowered the global growth rate to 2.7 per cent for next year, warned of sovereign defaults on debts, and forecast recession and gloom for markets.
“It is tough, but we can deal with these challenges,” the IMF boss told an audience at the weeklong annual meeting of the IMF and World Bank multilateral lenders in Washington.
“For many people, 2023 will feel like a recession,” IMF chief economist Pierre Olivier Gourinchas tweeted in October as he laid out some gloomy numbers for the global economic outlook.
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World Bank President David Malpass, the IMF’s Kristalina Georgieva and many leading economists counted several factors for the global economic slowdown.
The war in Ukraine, the pandemic, inflation, China’s slow economy, climate change and the strong U.S. dollar, they said, had triggered the risk of a recession, with chances that the “worst is yet to come,” The Financial Times reported on the multilateral lender’s latest global outlook.
