The world economy will enter recession this year says IMF

The world economy will enter recession this year, says IMF directorgeneral

Kristalina Georgieva predicted a “very difficult” economic scenario for 2023 due to the slowdown in the United States, China and Europe

Gian Ehrenzeller/EFEIMF Kristalina Georgieva
Kristalina Georgieva is the current Director General of the International Monetary Fund

The Director General of IMF (IMF), Kristalina Georgieva, stated that the world economy will face major challenges this year and that as a result of the economic slowdown, there will be a global recession US, China and the European Union. “This is going to be a tough year for much of the global economy, tougher than the year we left behind. There? Because the 3 big economies are slowing down at the same time,” he mused. According to the manager, North Americans should reduce the risk of a financial crisis if the central bank (FED Federal Reserve) keeps interest rates high to combat high inflation. In the case of the European bloc, the coming months will be marked by the effects of the war in Ukraine, and half of the group of states will grow negatively. already the China will grow below or equal to the world average for the first time in the last 40 years following new waves of contamination from Covid19 and the imposition of health restrictions. A report released by the fund last November said the outlook for the global economy was “bleak”. “The challenges facing the global economy are immense, and weakening economic indicators point to further challenges. The outlook for a growing share of G20 countries slipped from expansionary territory to levels signaling contraction earlier this year. This applies to advanced and emerging economies and underscores the global nature of the slowdown,” reads an excerpt from the document, which guided the continuation of measures to curb high inflation.