Washington, D.C. US: The head of the International Monetary Fund (IMF) has warned that a third of the global economy will be in recession In 2023. Ms. Kristalina Georgieva stated that 2023 will be “tougher” than last year as the economies of the US, EU, and China see slow growth.
The global economy is currently being weighed down by the conflict in Ukraine, rising costs, higher interest rates, and the expansion of COVID in China. In October the IMF cut its global economic growth outlook for 2023.
“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,” Ms. Georgieva cited in a statement.
In October, the IMF revised its forecast for global economic growth in 2023 as a result of the conflict in Ukraine and higher interest rates as central banks around the world work to contain inflation. Since then, despite the massive spread of coronavirus infections in the nation, China has abandoned its “zero COVID” policy and begun to reopen its economy. Ms. Georgieva warned that China, the world’s second-largest economy, will face a difficult start to 2023. 
“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative,” the IMF Head observed.