IMF predicts tougher global economy in 2023

Marcus Amudipe
Marcus Amudipe
FILE: Crude oil

 

Managing Director of the International Monetary Fund, Kristalina Georgieva, has stated that 2023 will be tougher on the global economy than the previous year.

According to Al Jazeera, she stated this on Sunday in an interview with American news channel CBS.

Georgieva predicted that a third of the world’s economies will remain in recession for the rest of the year, resulting in slower global growth than last year. The IMF predicts 2.7% global growth this year, up from 3.2% in 2022.

“Why? Because the three big economies, US, EU, China, are all slowing down simultaneously”. She said.

As the world was ready to deal with the ramifications of the COVID-19 disaster, it faced another blow when the war in Ukraine disrupted global energy and food supply.

While the IMF chief described the US economy as the most resilient, she predicted that Europe will do worse, estimating that half of the EU will be in recession by 2023.

The euro fell below the US dollar for the first time in 20 years this year, owing to the Ukraine war and an energy crisis that has resulted in increasing energy costs in several countries.

Several African countries have also been affected by the pandemic’s combined aftereffects and the worldwide price rise. Food and energy price increases have reduced demand, making it even more difficult for some countries to recover.

China is also predicted to underperform this year, owing to an increase in COVID instances, which prompted countries around the world, including Morocco, to impose new travel restrictions on visitors from the country.

The Asian country’s reopening and relaxing of COVID rules are expected to provide some respite to the global economy, but experts continue to feel that the recovery would be difficult.

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