Lagatar24 Desk
New Delhi, Jan 2: The global economy will face ‘a tough year, tougher than the year we leave behind’, International Monetary Fund (IMF) managing director Kristalina Georgieva warned.
“We expect one-third of the world economy to be in recession,” Kristalina Georgieva told CBS in an interview.
“Why? Because the three big economies US, EU, China are all slowing down simultaneously,” she added.
In October, the IMF issued a warning stating that more than a third of the world’s economies will collapse, with a 25% possibility that global GDP will increase by less than 2% in 2023. This qualifies as a worldwide recession.
Kristalina Georgieva examined the three largest economies in the interview and presented a conflicting picture of their resilience to the slump.
”While the US may avoid recession, the European Union has been very severely hit by the war in Ukraine half of the EU will be in recession next year,” she said.
However, she added, the outlook for the US, the world’s largest economy, may provide some solace.
“If that resilience of the labor market in the US holds, the US would help the world to get through a very difficult year,” she further added.
