IMF anticipates a tough year for the global economy

The International Monetary Fund is expecting an economically difficult year in 2023. The new year will be more difficult than the old one, said IMF boss Kristalina Georgiewa on Sunday on the US broadcaster CBS. "Why? Because the three most important economic areas – the USA, EU and China – are weakening at the same time.” She assumes that half of the EU countries will be in recession in 2023, and it will be a third worldwide.

Georgieva had already said at the beginning of December that the prospects for the global economy were becoming increasingly gloomy. The probability that growth will be below two percent in 2023 is increasing. She pointed to the continuing burdens of the war in Ukraine, which, among other things, has driven up energy prices.

She was particularly concerned about the slowdown in China. The rapidly increasing corona infections in the second largest economy in the world after the USA did not bode well for the global economy, she said on Sunday. The USA is still the most resilient, and a recession can be avoided here.

The International Monetary Fund will update its forecasts for the global economy in January. The IMF last lowered its estimate for 2023 in October. Accordingly, the global economy is only likely to grow by 2.7 percent.

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