Another major recession is looming over 2023: IMF chief warns

New York: The New Year is going to be tough for much of the global economy, warns International Monetary Fund chief.

The US, Europe and China, Kristalina Georgieva told CBS Sunday morning news, all experience weakening activity in 2023, The Guardian reported.

Kristalina Georgieva reasoned that all three major economies are slowing down simultaneously leaving its impact felt across the world.

Projecting the unpleasant situation further, she said one-third of the world economy will be in recession including nations that are not facing recession will feel like recession for hundreds of millions people.

Georgieva’s prediction comes as the world is currently facing slackening growth and crisis on various fronts including essential goods following the Ukraine war.

Alongside the Covid 19 is making a comeback with millions getting infected in several countries, pressuring further on their economies.

Georgieva said China is likely to grow at or below global growth for the first time in 40 years. The world’s second largest economy has been facing crisis from the pandemic.

Covid infections are likely to further hit its economy dragging down both global and regional growth, according to her.

“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative,” The Guardian quoted her as saying.

The US economy will stand apart dodging an ‘outright contraction’, according to her, while a third of world’s economies will be affected by contraction.

She added that the US is most resilient thus it may avoid recession.