2023 will be a difficult year for the world economy

The President of the International Monetary Fund (IMF) Georgieva made evaluations about the global economy in an interview with CBS television.

Asked about the IMF’s prospects for a recession in 2023, Georgieva said, “For much of the world economy, this will be a tougher year than we’ve had.” gave the answer.

Georgieva cited the slowdown in 3 major economies as the USA, European Union (EU) and China as the reason for this.

Pointing out that the USA is the most resilient, Georgieva explained that the labor market in the country remains quite strong, the US economy can survive the recession, but this may force the US Federal Reserve (Fed) to keep interest rates higher for a longer period of time to reduce inflation.

“Half of the EU will go into recession”

Georgieva stated that the EU was seriously affected by the war in Ukraine and shared her prediction that half of the EU countries will go into recession this year.

Noting that this year will also be difficult for the Chinese economy, Georgieva said, “China will slow down even more this year.” made its assessment.

Georgieva stated that the picture is even more dire due to high interest rates and the appreciation of the dollar when looking at emerging economies.

“We expect a third of the world economy to go into recession,” IMF Managing Director Georgieva said. used the phrase.

Georgieva stated that the increasing Covid-19 cases in China in the short term are bad news for the world economy.