2023 to be tougher year for global economy, warns IMF Chief Kristaline Georgieva

International Monetary Fund (IMF) chief Kristaline Georgieva warned that the global economy would face a 'tough year', even tougher than the last year. The IMF chief made this serious claim on Sunday in a CBS news programme, claiming that a third of the global economy would be in recession this year. 

On the news programme, Georgieva said, "We anticipate that one-third of the globe's economy to be in recession."

The statement comes as the ongoing conflict between Russia and Ukraine shows no sign of abating after more than ten months, with spiralling inflation, higher interest rates, and an increase in coronavirus cases in China fuelled by the new Omicron variant.

The year 2023 will be tougher than the previous year as the economies of the United States, the European Union, and China will slow down, said Georgieva. She further explained, "Even in the non-recessionary countries, it would feel like a recession for hundreds of millions of people." IMF reduced its growth forecast for 2023 in October of last year. 

According to the report, "Global growth is anticipated to decline 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-19 pandemic."

Following the anti-government protest across the country, China has dismissed its zero Covid policy and opened its economy. 

She also said, "For China, the next couple of months would be challenging, and the impact on Chinese growth would be negative, as well as the impact on the region's and the world's growth."

(With inputs from PTI)

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• IMF
• International Monetary Fund
• Kristaline Georgieva
• global economy