A third of the global economy will be affected recession in the year that has just begun. This is the forecast of the Director General of the International Monetary Fund (IMF), Kristalina Georgieva, in an interview with the American broadcaster Cbs. For Georgieva, world leaders and citizens need to prepare for a 2023 more difficult of the previous year from the perspective of macroeconomic fundamentals. Indeed the expected simultaneous slowdown of United States, China and the European Union. As for the latter, the IMF expects that “Half of the EU countries will be in recession» during the year, said Georgieva. The Washington institution already lowered its growth forecasts for 2023 last October, which was slowed down in particular by inflationary pressure and the resulting interest rate hikes by central banks. But Georgieva’s comments today, January 1, could be a harbinger cut further Forecasts in the next update expected at the World Economic Forum in Davos this month.
In fact, the new wave of Covid-19 infections has occurred in recent weeks after restrictions have been relaxed China. “The next two months will be tough for China and theimpact on growth, from Beijing, but also from the region and the world, will be negative,” Georgieva made clear into the Cbs microphones. China’s annual growth is likely for the first time in 40 years on par if not below the level of global growth. The impact of this unprecedented phenomenon on global economic activity has yet to be measured. But the overall panorama seems tinged with increasingly gray tones.
Photo: EPA/FILIP SINGER – IMF Managing Director Kristalina Georgieva – Berlin, November 29, 2022.
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