Most The world economy will face a ‘harder’ year in 2023 More than in 2022 due to the simultaneous slowdown in the US, the European Union (EU) and China, the world’s three largest economies. International Monetary Fund (IMF), Kristalina Georgievanoting that one third of the world economy recession.
“For most of the world economy, this will be a tougher year than we left behind. Why? Because the three big economies, the US, EU and China, are slowing down at the same time.” Bulgarian economist in an interview with the CBS chain compiled by Europa Press.
According to the IMF director, America is more resilient and can avoid a recession“Half of the European Union will go into recession next year” and China will slow further.
“I hope the USA does not go into a recession despite all these risks,” said Georgieva, but stated that the IMF expects “one-third of the world economy to go into recession”. “it will feel like a recession for hundreds of millions of people,” even in countries avoiding contraction.
In this sense, he reminded that the IMF expects a slowdown in the global economy, which will reduce world growth to at least 2.7 percent, while it was 6 percent and 3.2 percent in 2021.
“And that means: negative global trendsGeorgieva warned, referring to emerging markets and emerging economies “where the picture is even more serious” as they are “added to everything else” as they are affected by higher interest rates and the appreciation of the dollar. Economies with high debt are “a catastrophe”.
Thus, Georgieva underlined that the countries in trouble so far are not important enough to trigger a systemic debt crisis and warned if the list continues to get longer. “A negative surprise may await the world economy.”
Source: Informacion
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