The United States, China and Europe will slow down simultaneously and half of the EU could go into recession
International Monetary Fund (IMF) chief executive Kristalina Georgieva has warned that 2023 will be “more difficult than the year we left behind” for much of the global economy. In an interview on US CBS television, Georgieva explained that this year the main engines of global economic growth (the United States, China and Europe) will weaken at the same time. This simultaneous slowdown is likely to push a third of the world economy into recession this year, according to the IMF director.
However, he also pointed out that the US economy is the most resilient and can avoid a recession (which occurs when there are at least two consecutive quarters of negative growth), although half of Europe may experience it this year.
For their part, the outlook for emerging markets is even more negative due to the high level of debt and the strength of the US dollar, making their imports more expensive.
The head of the IMF did not mention Spain, but in December the Bank of Spain slightly worsened its forecasts for our country this year, although it ruled out a recession. It estimates that economic growth will slow from its forecast of 4.6% for 2022 to a 1.3% increase in GDP this year, mainly due to the deterioration abroad.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
