Third of world in recession this year, IMF head warns

By Arshan Chowdhury, Staff Reporter, The Pawprint

The head of the International Monetary Fund (IMF) warned that a third of the global economy will shrink/recede this year. Kristalina Georgieva said 2023 will be “more challenging” than last year as the US, EU and China saw their economies slow.

It comes as the war in Ukraine, rising prices, rising interest rates and the spread of Covid in China weigh on the global economy. Georgieva warned that China, the world’s second-largest economy, would face a rough start to 2023. “Over the next two months, it will be very difficult for China, and it will have a negative impact on China’s growth, negative impact on the region, negative impact on global growth,” she said.

The IMF is an international organization with 190 member countries. They work together to try to stabilize the global economy. One of its main roles is to act as an economic early warning system. Georgieva’s comments will cause concern around the world, especially in Asia, which has just had a difficult 2022.