The Managing Director of the International Monetary Fund issued a strong warning about the difficulties the global economy will face in 2023.
“For a large part of the global economy, 2023 will be a difficult year as the main engines of global growth — the US, Europe and China — are all weak,” Kristalina Georgieva said on Sunday.
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The new year will be “more difficult than the year we left,” Georgieva said on the CBS Sunday news program.
She noted that the three major economies – the US, the European Union and China – are slowing down at the same time.
She explained that 2023 will be a challenging year for much of the global economy as a third of the global economy is expected to enter recession within a year.
“Half of European economies will enter recession, and the rise in Covid cases in China is worrying news for the global economy in the near future,” Georgieva said.
She pointed out that the outlook for emerging economies is worse because of the level of debt and the strength of the dollar.