Most emerging market economies may face a serious debt crisis by the end of 2023 due to the significant increase in government debt amid general global uncertainty. In this regard, the International Monetary Fund (IMF) warns that social tension may increase, informs Der Spiegel magazine, citing the words of the head of the organization, Kristalina Georgieva.
“About 60 percent of emerging markets and developing countries are at risk of falling into a serious debt crisis. Therefore, a high-profile debt restructuring meeting should be held in February with the participation of key creditors and private sector representatives,” he said.
In doing so, it reiterated the risk that many countries’ debt burdens would rise sharply in the face of rising interest rates. Under these circumstances, governments of various countries must continue to provide financial assistance to citizens in the face of an intensifying crisis.
“The global labor market is still resilient. Governments responded quickly and provided financial support to the public in the face of rising food and energy prices. However, the opportunities for this kind of help are narrowing,” concluded Georgieva.
January 13 Bloomberg reportedthat the risks of a global recession could last until 2023. Despite a number of positive factors in early January, including relatively warm weather in Europe during the peak winter warming period, the resumption of production in China after prolonged curfews, and a steady decline in inflation in the US, the world did not find this situation. did not change. but by the end of this year it has completely escaped the risk of a major recession.