A third of the global economy will be hit by recession this year, the head of the IMF has said, as she warned that the world faces a “tougher” year in 2023 than the previous 12 months.
The US, European Union and China are all slowing simultaneously, Kristalina Georgieva, IMF managing director, said.
“We expect one-third of the world economy to be in recession,” Georgieva told US TV network CBS in an interview that aired on Sunday, adding that “half of the European Union will be in a recession” this year.
The IMF cut its 2023 outlook for global economic growth in October, citing the continuing drag from the war in Ukraine as well as inflation pressures and rises in interest rates by major central banks.
The rapid spread of Covid in China now that its president Xi Jinping has dropped the country’s severe containment policy means that the country faces a fresh economic…
