Recession to hit 1/3rd of world this year: IMF

Washington, January 2

A third of the global economy will be in recession this year, the International Monetary Fund (IMF) chief has said, and warned that 2023 would be “tougher” than last year as the US, EU and China would see their economies slow down.

Kristalina Georgieva’s assertions came at a time when the ongoing conflict in Ukraine shows no signs of abating after more than 10 months, with spiralling inflation, higher interest rates and the surge in Covid infections in China.

“We expect one-third of the world economy to be in recession. Even in countries that are not in recession, it would feel like a recession for hundreds of millions of people,” Georgieva said. In October last year, the IMF trimmed its growth forecast for 2023.

“Global growth is forecast to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the Covid pandemic,” it said.

“For the next couple of months, it will be tough for China, and the impact on Chinese growth will be negative, the impact on the region will be negative, the impact on global growth will be negative,” she added. — PTI

The china factor

Next couple of months will be tough for China and its impact on region and global growth will be negative. — Kristalina Georgieva, IMF chief