General

Third of world in recession this year, IMF Head warns

WASHINGTON— A third of the global economy will be in recession this year, the head of the International Monetary Fund (IMF) has warned.

Kristalina Georgieva said 2023 will be “tougher” than last year as the US, EU and China see their economies slow.

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

“We expect one third of the world economy to be in recession,” Georgieva said on the CBS news programme Face the Nation.

The IMF cut its outlook for global economic growth in 2023 in October, due to the war in Ukraine as well as higher interest rates as central banks around the world attempt to rein in rising prices.

Since then China has scrapped its zero Covid policy and started to reopen its economy, even as coronavirus infections have spread rapidly in the country.

Georgieva warned that China, the world’s second largest economy, will face a difficult start to 2023.

Source: NAM NEWS NETWORK