New Delhi. As we enter the new year of 2023, the global economic crisis and fear of recession (Global Recession Fear) is beginning to deepen. The president of the International Monetary Fund (IMF) said on Sunday that 2023 will be a difficult year for the global economy in terms of global development. The president of the IMF said this after witnessing slowdowns in economic activity in the United States, Europe and China.
IMF Executive Director Kristalina Georgieva told CBS’s Sunday morning show “Face the Nation” that the new year “will be tougher than the year we’re left with,” according to Reuters. . “Why? Because the three largest economies – the US, the European Union and China – are slowing down at the same time.
China’s Tricky Decision Amid Corona Contagion
In October, the IMF revised and lowered its 2023 global economic development outlook. The IMF blamed rising inflation from the war between Russia and Ukraine and interest rate hikes by the US Federal Reserve.
At the same time, China ended its Covid-zero policy and began to aggressively reopen its economy. However, coronovirus cases are still increasing. In his first public speech after his policy change, President Xi Jinping called for greater effort and unity as China entered a “new phase” in his New Year address on Saturday.
“For the first time in 40 years, China’s growth in 2022 is expected to match or fall below global growth,” said her AIMF Secretary Georgeva.
“The U.S. economy is improving somewhat.”
Meanwhile, Georgieva said the US economy could remain on the sidelines and avoid problems that could affect a third of the world’s economies. “We have a very strong job market, so America can avoid a recession.”
Earlier, in its annual consultation report on India, the IMF said that the Indian economy had grown very strongly this financial year. According to the report, real GDP is expected to grow by 6.8% and 6.1% in fiscal years 2022-23 and 2023-24, respectively. These estimates are much better than before. When asked about the risks associated with India, he said the risks are mainly due to external factors.