IMF warns of a difficult 2023 year for global economy

The new year will be the hardest “than the next year,” said Mrs. Georgieva in an interview for the “Face the Nation<x3) television show CBS).

Why? Because all three major economies -- the US, the EU and China -- are slowing down simultaneously,” she said.

In October, The IMF reduced the forecast for global economic growth in 2023, reflecting the ongoing decline from war in Ukraine, as well as the pressure of inflation and high interest rates imposed by central banks like that of the United States.

Since then, China has given up its zero policy - CO VID and has launched a chaotic reopening of its economy, although consumers there remain cautious, while the cases of coronary rise.

In his first public remarks since lifting restrictions, President Xi Jinping called on Saturday in the New Year's speech for more effort and unity as China enters a new “phasis”.

For the first time in 40 years, China's growth to 2022 is likely on the same level or below global growth,” said Mrs. Georgieva.

Moreover, an expected explosion of COVID infections there in the coming months is likely to further hit its economy this year and slow regional and global growth, said Mrs. Georgieva.

For the next two months, it will be difficult for China, and the impact on Chinese growth will be negative, the impact in the region will be negative, impact on global growth will be negative,” she said.

In the October forecast, the IMF determined the growth of the gross domestic product in China last year to 3.2% on the same level as the global fund forecast for 2022. At that time, she also predicted that annual growth in China would accelerate in 2023 to 4.4%.

But its comments suggest that at the World Davos Economic Forum in Switzerland this month, the IMF will make another decrease in forecast for the growth of China's and global economy.

EXONOMY OF STATEV E T It's been UNITED TIFE MAKE

IMF Director Georgieva said the American economy could avoid direct contraction that would likely hit up to a third of the world's economies.

The United States has the greatest recovery capacity, she said, and “can avoid recession. We see that the labour market there remains very strong. ”

But this fact in itself poses a danger because it could hinder the progress the Central Bank must make to reduce US inflation from the highest level in four decades.

Inflation showed signs that it had reached its peak at the end of 2022, but it continues to be almost triple the 2% target. / VOA