Washington: The International Monetary Fund (IMF) has warned about the state of the global economy. It said that one-third of the global economy will be in recession this year and it will be more difficult than in 2022 amid fears of a softening in the US, EU, and China. Monetary Fund chief Kristalina Georgieva said this on Sunday in a program of the news channel CBAS News. He said this at a time when even after 10 months of the Russia-Ukraine war, there is no sign of its end.
Apart from this, there are rising inflation, high-interest rates, and increasing coronavirus infections in China. Georgieva said, “We estimate that one-third of the global economy will be in recession. He said, “In fact the year 2023 will be tougher than last year. The reason for this is the apprehension of softening in America, the European Union, and China. The IMF chief said, “Even in countries where there is no recession, there will be a recession-like situation for millions of people.
In October last year, the Monetary Fund reduced the economic growth forecast for 2023. The global institute said, “The global growth rate is expected to decline to 3.2 percent in 2022 and 2.7 percent in 2023, from six percent in 2021.” This is the weakest trend of growth since 2001, barring the global financial crisis and the COVID-19 pandemic. Georgieva said, “The next one-two month will be difficult for China, and growth in China will have a negative impact on regional and global growth.
