The International Monetary Fund (IMF) has said that one-third of the world’s economies will slide into recession in 2023.
It also disclosed that 2023 will be tougher than 2022 for most of the global economy as the United States, European Union and China see slowing growth.
The Managing Director, IMF, Kristalina Georgieva, disclosed this during an appearance on the CBS television programme, ‘Face the Nation’ on Sunday, January 1, 2023.
Explaining the reasons for the phenomenon, the IMF boss said that major economies that drive global growth are slowing down simultaneously and that the impact is bound to have a global effect.
She identified the US, EU and China as the economies that are having a slowing-down performance that would cause at least a third of the world’s economies go slide into recession.
The remarks came after the IMF had in October cut its global growth forecast to 2.7 percent, down from 2.9 percent forecast in July, amid headwinds including the war in Ukraine and sharply rising interest rates.
Georgieva said that China, the world’s second-largest economy, is likely to grow at or below global growth for the first time in 40 years as COVID-19 cases surge following the dismantling of its ultra-strict “zero-COVID” policy.