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One-Third Of the Global Economy Will Be Impacted By Recession In 2023: IMF IMF chief has also said that for the next couple of months, it would be tough for China

By Teena Jose

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Kristalina Georgeiva Twitter handle

International Monetary Fund chief Kristalina Georgieva has said that one-third of the global economy will be impacted by the recession in 2023 while asserting that the new year will be tougher than 2022 as the US, EU and China will see their economies slow down, according to reports.

"We expect one-third of the world economy to be in recession. For much of the global economy, 2023 is going to be a tough year as the main engines of global growth, the United States, Europe and China, all experience weakening activity. Even in countries that are not in recession, it would feel like a recession for hundreds of millions of people," said the IMF chief during a CBS news programme, 'Face the Nation' on Sunday.

China has scrapped its zero Covid policy and opened its economy following a wave of anti-government protests. On the backdrop of this, the IMF chief has reportedly warned China that, "For the next couple of months, it will be tough for China, and the impact on Chinese growth will be negative. For the first time in 40 years China's growth in 2022 is likely to be at or below."

Meanwhile, Georgieva, as per a report that, "The US economy is standing apart and may avoid the outright contraction that is likely to afflict as much as a third of the world's economies. The US is more resilient and it may avoid recession. We see the labour market remaining quite strong."

In October 2022, the IMF had said that when everyone is slowing down in terms of economic growth, India has not remained unimpacted, but is doing better and is in a relatively bright spot compared to other countries. Also, in November 2022, the IMF had further stated that the global economic outlook became gloomier than the previous month. It had blamed the darker outlook on tightening monetary policy triggered by persistently high and broad-based inflation, weak growth momentum in China, and on-going supply disruptions and food insecurity caused by Russia's invasion of Ukraine.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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