The U.S., EU, and Chinese economies are all slowing down at the same time, according to the International Monetary Fund (IMF), which has warned that 2023 will be a more difficult year for the majority of the global economy.
“We anticipate a recession affecting one-third of the global economy… For hundreds of millions of people, it would feel like a recession even in countries that are not experiencing one, according to IMF chief Kristalina Georgieva.
In an interview with CBS that aired on Sunday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva discussed the IMF’s expectations for the US, the EU, China, and the global economy.
This year will be harder than the one we leave behind for the majority of the global economy.
because the economies of the U.S., the EU, and China are all slowing down at the same time.
This is a mixed blessing, though, as a strong labor market may need the Fed to maintain higher interest rates for longer in order to reduce inflation, said the IMF chief.
China’s economy will continue to slow down this year, she added.
China will have a difficult year in 2019.
Due to this strict zero Covid policy, China’s economy has significantly slowed down in 2022.
China’s growth in 2022 is probably going to be at or below global growth for the first time in 40 years.
The IMF managing director shared: “Despite all these concerns, I hope the U.S. economy is not going to relapse into recession,” she stressed.
We anticipate that one third of the global economy will be in decline. It would feel like a recession to hundreds of millions of people, even in nations that are not experiencing one.
The globe “has changed drastically,” Georgieva continued, stressing that “it is a more shock-prone environment.” These shocks, according to her explanation, include the Covid issue, the Russia-Ukraine war, and the rising cost of living.
“My advice is to not anticipate a return to the predictability of the Covid era.