IMF chief Kristalina Georgieva on global economy
The International Monetary Fund (IMF) chief, Kristalina Georgieva, made these bleak claims on January 1 during a CBS news programme. Kristalina Georgieva predicted that 2023 will be "tougher" than last year due to slowing economies in the United States, the European Union, and China.
It comes as the global economy is being weighed down by the Ukraine conflict, rising prices, higher interest rates, and the spread of Covid in China.
The IMF reduced its global economic growth forecast for 2023 in October.
"We expect one-third of the global economy to be in recession," Ms Georgieva said on CBS' Face the Nation.
"Even in non-recessionary countries, it would feel like a recession for hundreds of millions of people," she added.
2023 will be a difficult year for the world. The silver lining is we can use it to transform economies & accelerate change that’s good for our climate, good for growth. At the IMF, we recognize our responsibility to be a force for good. Watch the event: https://t.co/Yv1TvfCytH pic.twitter.com/lsrXDDLNyy
— Kristalina Georgieva (@KGeorgieva) December 29, 2022
"While our baseline prevents a global recession, China, the world's second-largest economy, is likely to grow at or below global growth for the first time in 40 years, according to Georgieva, as COVID-19 cases rise following the repeal of its ultra-strict "zero-COVID" policy.
"Nothing like that has ever happened before. And, for the next three, four, five, or six months, the relaxation of COVID restrictions will result in a flood of COVID cases throughout China," Georgieva said. "I was in China last week, in a bubble in the city where there is 'zero COVID'. But that will not last once the Chinese people begin to travel."