Key takeaways:
- IMF Managing Director Kristalina Georgieva is predicting that one-third of the world’s economies will slip into recession in 2023, with the biggest impacts being felt in emerging and developing economies.
- Russia’s war on Ukraine and China’s abruptly changing COVID-19 policies are both playing large roles in this outlook.
- The American economy is tenuous but could avoid a recession if it maintains its strong labor market. Its success is a double-edged sword for emerging economies, though.
A grim outlook arose for the new year when Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), revealed predictions for the 2023 global economy in an interview with the CBS show Face the Nation.
The interview revealed that three of the world’s largest economies – the EU, the U.S. and China – are all slowing simultaneously. Georgieva pointed out that as bad as that looks for the three governances, it’s even worse for emerging and developing economies across the globe. She says that one-third of the world economy will be in recession in 2023.
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