2023 warning from IMF chief – Money News

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IMF Managing Director Kristalina Georgieva made assessments on the global economy in an interview with CBS.

Asked about the IMF’s expectations for a recession in 2023, Georgieva said, “For much of the world economy, this will be a tougher year than we had before.” gave the answer.

Georgieva cited the slowdown in 3 major economies as the USA, European Union (EU) and China as the reason for this.

Pointing out that the USA is the most resilient, Georgieva explained that the labor market in the country remains quite strong, the US economy can survive the recession, but this may force the US Federal Reserve (Fed) to keep interest rates higher for a longer period of time to reduce inflation.

Georgieva stated that the EU was seriously affected by the war in Ukraine and shared her prediction that half of the EU countries will go into recession this year.

Noting that this year will also be difficult for the Chinese economy, Georgieva said, “China will slow down even more this year.” made its assessment.

Georgieva stated that the picture is even more “dire” due to high interest rates and the appreciation of the dollar when looking at emerging economies.

“We expect a third of the world economy to go into recession,” IMF Managing Director Georgieva said. used the phrase.

Georgieva stated that increasing Kovid-19 cases in China in the short term is bad news for the world economy.

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