TUE. 03 JANUARY, 2023-theGBJournal| The Managing Director of the International Monetary Fund (IMF) Kristaline Geogieva has warned of major hit on global economies as the US, European Union and China see slowing growth.
The dire warning come after the FUND cut its global growth forecast to 2.7% in October, down from 2.9% forecast in July amid the Ukraine/Russia conflict and rising global interest rates.
Speaking on a CBS News program, she said 2023 will be a ”tough year”, with one-third of the global economies expected to relapse into recession.
The IMF Chief said China, the world’s second largest economy, is likely to grow at or below growth for the first time in 40 years as COVID-19 cases surge following the dismantling of its ultra strict zero-COVID Policy.
She said however, that she expected China’s growth to improve towards the end of the year but there are concerns about its longer-term trajectory.
Georgieva noted that the EU has been especially hard hit by the war in Ukraine, with half the bloc expected to be in recession in 2023.
The IMF had also in October forecast the Eurozone growth to fall to 0.5% this year as high energy prices slam output. It said some key economies including Germany and Italy will enter into technical recessions.
She said noted that the US economy has stood out for its resilience and could outright avoid contraction. The IMF kept its 2023 US growth forecast unchanged at 1%.
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