The year 2023 going to be tough for global economy, IMF head warns

The new year is going to be tougher than the year we leave behind, IMF managing director Kristalina Georgieva said Sunday on the CBS news program Face the Nation, according to the Guardian.

The IMF head warns the tough economic situation as “the three big economies- the US, EU and China- are all slowing down simultaneously”, writes the guardian adding “Georgieva said that 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 surge following the dismantling of its ultra-strict zero-Covid policy.

“It comes as the war in Ukraine, rising prices, higher interest rates and the spread of Covid in China weigh on the global economy”, BBC writes.

Ms Georgieva said “We expect one third of the world economy to be in recession”, mentioning that “Even countries that are not in recession, it would feel like recession for hundreds of millions of people.”