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IMF head: China, America, and Europe will be the causes of the one-third of the world’s economies that will be in recession in 2023

03.01.2023: The global economy will deteriorate worse in 2023 than it did in 2022. According to IMF chief Kristalina Georgieva, one-third of the world will be experiencing a recession by 2023. People will experience worsening economic conditions even in nations where there won’t be a recession. The faltering economies of China, the United States, and the European Union were his reasons for this. According to him, the world economy will also be impacted by the conflict in Ukraine, rising inflation, interest rates, and the onset of the Corona pandemic in China.

The coming months are likely to be challenging for China, according to Kristalina. China’s economic growth may be slower than that of the rest of the globe for the first time in 40 years. The amount of manufacturing in China had fallen to its lowest point in the previous three years by December 2022. The BBC estimates that during the past six months, property prices have fallen in 100 of China’s largest cities. The global economy will also be impacted by all of this.

According to Kristalina, there will undoubtedly be a recession in Europe as a result of the conflict in the Ukraine, inflation, and rising interest rates. The IMF has already lowered its prediction for 2023’s GDP growth. The chief of the IMF claimed that the US economy is strong and can weather the downturn. There, the work market is still extremely robust. However, the Federal Bank will need to maintain high interest rates to keep inflation in check.

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