A third of the world economy will be plunged into a recession on 2023, the International Monetary Fund (IMF) boss, Kristalina Georgieva has warned.
Speaking on the IMF’s outlook for the New Year, Georgieva warned that 2023 would actually be tougher economically than 2022, which on its own was quite tasking.
This comes as the war in Ukraine, rising prices, higher interest rates and the spread of Covid in China weigh on the global economy.
“Why? Because the three big economies, [the] US, EU, China, are all slowing down simultaneously,” Georgieva said during an appearance on the CBS programme “Face the Nation” on Sunday.
In October the IMF cut its global economic growth outlook for 2023.
“We expect one third of the world economy to be in recession,” Ms Georgieva said on the CBS news programme Face the Nation.
“Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added.
Katrina Ell, an economist at Moody’s Analytics in Sydney, gave the BBC her assessment of the world economy.
“While our baseline avoids a global recession over the next year, odds of one are uncomfortably high. Europe, however, will not escape recession and the US is teetering on the verge,” she said.
Source: theGhanaianVoice.Com