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“This is going to be a tough year for most of the global economy, tougher than any we’re going through. Why? Because the three big economies USA, EU, China are all slowing down at the same time. The United States is the most resilient. The United States could avoid a recession.” IMF, Kristalina Georgievaduring an interview on CBS. In the US, “we’re seeing the job market remain pretty strong. However, this is half a blessing because if the labor market is very strong, the Fed may have to hold out longer to bring inflation down,” he points out.
As for the European Union, “it is being hit very hard by the war in Ukraine. Next year half of the European Union will be in recession. China will continue to slow down this year. The next year will be difficult for China. And this leads to negative trends worldwide. If we look at emerging markets in the developing world, the picture there is even grimmer. Why? Because on top of everything else, they are affected by high interest rates and the appreciation of the dollar,” emphasizes Georgieva.
In its latest World Economic Outlook, published in April 2022, the International Monetary Fund forecast global growth of 3.6% in 2022 and 2023, compared to 4.4% and 3.8% in its January report.
