Georgieva said in remarks in a televised interview that the new year will be “more difficult than the year we leave behind.”
“Why? Because the three major economies, the United States, the European Union and China, are all slowing down simultaneously,” she added.
The International Monetary Fund had lowered its forecast for the growth of the global economy during 2023, in October, by 0.2 percentage points to 2.7 percent, compared to previous expectations last July that the global economy would grow in 2023 by 2.9 percent.
The International Monetary Fund expected that the year would witness an economic recession that would be felt by millions of people around the world.
On the Chinese economy, Georgieva said in mid-December that it is “very likely” to reduce the growth expectations of the Chinese economy for the current and next years, as it is expected that easing the restrictions to contain Covid will lead to a boom in infections and temporary difficulties.
The Director General’s remarks came on the sidelines of a seminar on a fund recently established by the Financial Authority, at a time when the second largest economic power is suffering from an increase in Covid infections, after easing restrictions to contain the epidemic after nearly three years of imposing them.
Georgieva said that while the “zero Covid” policy had severely damaged the country’s economy, “the easing of restrictions will create some difficulties in the coming months.”
#International #Monetary #Fund #year #difficult #global #economy