Half of the EU countries will be in recession by 2023, the head of the IMF predicts

The International Monetary Fund shared its forecasts for the next year and the global economy. And this is not reassuring.

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Half of the EU countries next year will be in recession, said the head of the International Monetary Fund (IMF) Kristalina Georgieva in an interview with the American television channel CBS. She also warned that the global economy will be in trouble after 2022. “We expect a third of the global economy to be in recession,” she said.

Ms. Georgieva explained in an interview with CBS’ Face the Nation that “the three largest economies – the United States, the European Union and China – are simultaneously slowing down.” Last October, the IMF warned that a third of the global economy would contract and that there was a 25 percent chance that global gross domestic product would grow by less than 2 percent by 2023, which the IMF considers a global recession.

See also: Belgium will enter recession: causes, consequences, duration… Here’s what it means

The head of the IMF paints a different picture of the largest economies. “While the US may be able to avoid a recession, the EU has been “hard hit by the war in Ukraine.” As a result, she predicts that half of the EU will be in recession this year. At the same time, China is going through a “difficult year”.

“This leads to negative trends all over the world. And when we look at emerging markets in developing countries, the situation is even worse,” said Ms. Georgieva. She hopes the United States will be able to ease the situation. “If the resilience of the American labor market continues, the United States can help the world get through a very difficult year.”

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