USA: IMF Managing Director Kristalina Georgieva has warned that 2023 will be a difficult year for the global economy. Michele Tantusi/Reuters Personnel and agencies ITS HILL The head of the International Monetary Fund has warned that 2023 will be a difficult year for the global economy as the US, Europe and China, the three main drivers of global growth, all experience weakening activity. IMF Managing Director Kristalina Georgieva said on CBS's Sunday morning news program Face the Nation that the new year would be "tougher than the year we left behind."

“Why? Because all the three major economies of the world – the US, the European Union and China – are facing a recession at the same time.

"We anticipate a recession in a third of the global economy. For millions of people, this will feel like a recession even in countries that are not experiencing one," she continued.

Also Read: Global Investor Summit- A way towards the stronger economy

Can the IMF meet its targets?
The IMF in October revised its forecast for global economic growth in 2023, taking into account the ongoing negative effects of the conflict in Ukraine, as well as inflationary pressures and higher interest rates imposed by central banks such as the US Federal Reserve. . price pressure.

According to Georgieva, China, the world's second largest economy, is likely to grow at or below global growth for the first time in 40 years as COVID-19 cases rise as a result of the country's ultra-strict zero-COVID policy. is being abandoned.

According to Georgieva, China's growth in 2022 is "likely to equal or be below global growth for the first time in 40 years."

In addition, Georgieva, who visited China on IMF business late last month, predicted that its economy would be further damaged by a "bushfire" of anticipated Covid infections in the coming months, and that regional and global growth would suffer.

Also Read: An end to Demonetisation debate- Supreme Court's verdict

He predicted that the coming months would be difficult for China, which would have a negative impact on the development of the country as well as the region and the world as a whole.

2023 is expected to see some of the warmest global temperatures ever.
Meanwhile, according to Georgieva, the US economy is bucking the trend and may avoid the full contraction that could affect a third of the world's economies.

He claimed that the US is "most resilient" and "can survive a recession." The labor market is still expected to be quite strong.

Also Read: Indian economy to outpace world average growth in 2023

This is a "mixed blessing" according to Georgieva, because if the labor market is too strong, the Fed may need to maintain higher interest rates for a longer period of time to reduce inflation.