At a time when most countries in the world are battling rising interest rates, inflationary concerns and turbulent stock markets, International Monetary Fund (IMF)¡¯s Chief has again warned about global recession hitting this year.
IMF Chief?Kristalina Georgieva has said that?one-third of the global economy will be in recession this year.??
She has warned that 2023 will be "tougher" than last year as the US, EU and China will see their economies slow down.
"Even in countries that are not in recession, it would feel like a recession for hundreds of millions of people," she explained.
These warnings come at a time when the ongoing conflict in Ukraine shows no signs of abating after more than 10 months, with spiralling inflation, higher interest rates and the surge in coronavirus infections in China fuelled by the Omicron variant, as per PTI report.
In October last year, the IMF had trimmed its growth forecast for 2023.?"Global growth is forecast to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic," it said.
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China has scrapped its zero Covid policy and opened its economy following a wave of anti-government protests in the country.?"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," she added.
In September last year,?the World Bank had issued a similar warning about global recession.? This came?over two months after the?IMF?Chief had said that chances of?global recession in 2023 cannot be ruled out.
The world may be edging towards a global recession as central banks across the world simultaneously hike interest rates to combat persistent inflation, the World Bank had said in press release,
In a new?study, the World Bank had said that the world's three largest?economies?- the United States,?China, and the Euro area (Member States of the European Union that have adopted the euro as their currency) - have been slowing sharply, and even a "moderate hit to the global economy over the next year could tip it into recession."
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