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Sunday Jan 29, 2023

Global Economy | The new year will be more difficult than 2022, one-third of the global economy will be in recession: IMF


The new year will be more difficult than 2022, one-third of the global economy will be in recession: IMF

Washington: The International Monetary Fund (IMF) has warned about the state of the global economy. It said that one-third of the global economy will be in recession this year and it will be more difficult than 2022 amid fears of a softening in the US, EU and China. Monetary Fund chief Kristalina Georgieva said this on Sunday in a program of the news channel CBAS News. He said this at a time when even after 10 months of Russia-Ukraine war, there is no sign of its end.

Apart from this, there are rising inflation, high interest rates and increasing coronavirus infections in China. “We estimate that one-third of the global economy will be in recession,” Georgieva said. He said, “In fact the year 2023 will be tougher than last year. The reason for this is the possibility of softening in America, European Union and China. The IMF chief said, “Even in countries where there is no recession, there will be recession-like conditions for millions of people.”

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In October last year, the Monetary Fund had reduced the economic growth forecast for 2023. The global institute said, “The global growth rate is expected to decline to 3.2 percent in 2022 and 2.7 percent in 2023, from six percent in 2021.” This is the weakest trend of growth since 2001, barring the global financial crisis and the COVID-19 pandemic. Georgieva said, “The next one or two months will be difficult for China and growth in China will have a negative impact on regional and global growth.” (agency)



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