Speaking to US TV channel CBS News, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), gave her assessments for the global economy in 2023.
“For much of the global economy, 2023 is going to be tougher than 2022 as the three big economies, the US, the EU and China are all slowing down simultaneously… We expect one-third of the world economy to be in recession,” the managing director of the IMF said.
Stating that the US is most resilient economy and may avoid a recession, though the US Federal Reserve may have to keep interest rates tighter for longer to bring inflation down, Kristallina Georgieva noted that the EU was severely hit by the war between Russia and Ukraine and will in recession in 2023. She also stated that China will continue to slow down further this year due to possible mass Covid-19 infections amid the relaxation of the restrictions, leading to negative trends globally.
Regarding the developing economies, Georgieva stated that the picture is even direr there amid high interest rates and the appreciation of the US dollar.