The head of the International Monetary Fund has warned that, for greatly of the global economy, 2023 is moving to be a tough year as the major engines of global growth – the US, Europe and China – all experience weakening action.
Publish dateMonday 2 January 2023 - 17:12
Story Code : 263273
Afghan Voice Agency (AVA)_Monitoring, The new year is taking off to be “difficult than the year we leave behind,” IMF managing director Kristalina Georgieva said on the CBS Sunday morning news program Face the Nation on Sunday.
“Why? Because the three big economies – the US, EU and China – are all slowing down simultaneously,” she said.
“We expect one-third of the world economy to be in recession. Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added.
wards the end of the year but there are concerns about its longer-term trajectory.
“Before COVID, China would deliver 34, 35, 40 percent of global growth. It is not doing it anymore. It is actually quite a stressful for … the Asian economies. When I talk to Asian leaders, all of them start with this question, ‘What is going to happen with China? Is China going to return to a higher level of growth?’”
Meanwhile, the EU has been extremely hard hit by the war in Ukraine, with half of the bloc expected to be in recession this year, Georgieva said.
The IMF chief said, however, that the US economy has stood out for its resilience and could outright avoid contraction this year.
“The US is most resilient. The US may avoid recession,” she said.
“We notice the laborers market remaining relatively strong. This is, however, a mixed blessing because if the labour market is very strong, the Fed may have to keep interest rates tighter for longer to bring inflation down.” she added.
avapress.com/vdccm1qi12bqei8.-ya2.html
Tags
Top hits
