A recession awaits Europe this year, and the United States is also teetering on the brink of it.
The outlook for the economy is even bleaker this year than last year, estimates the head of the International Monetary Fund, the IMF Kristalina Georgieva in an interview with the American CBS news channel (you go to another service).
– We expect one third of the world economy to sink into recession, Georgieva said.
Inflation and rising interest rates worsen the effects of the recession on citizens’ lives even more.
– Even in countries that do not sink into recession, this will feel like a recession for hundreds of millions of people, Georgieva pointed out.
Also the British Broadcasting Corporation Interviewed by the BBC (you go to another service) Economic expert at Moody’s research institute Katrina Ell assesses the economic outlook as gloomy.
– According to our assessment, a global recession will be avoided this year, but its probability is uncomfortably high. However, Europe will not escape recession and the United States is teetering on the brink, Ell said.
The World Bank cut its 2023 growth forecast in October. The reason was above all the interest rate hikes by central banks, which were done to curb inflation, and Russia’s war of aggression in Ukraine.
Difficult first year in China
After the IMF’s assessment in October, China has begun to relax its corona lockdowns, despite the fact that the disease is spreading uncontrollably.
The main reason for the loosening of the restrictions has been the revival of the economy, but according to the IMF’s Georgieva, the first year of the Chinese economy is gloomy.
– It will be difficult for China for the next few months. The impact on the Chinese economy is negative, the impact on the region is negative, the impact on global growth is negative, he said.
The IMF is an international organization with 190 member countries. Its central purpose is to work together with the member countries to stabilize the world economy and to warn in time about the economic outlook.