IMF Says "The Worst Is Yet To Come, For Many People 2023 Will Feel Like A Recession"
The International Monetary Fund (IMF), has warned Tuesday that the “worst is yet to come” for the global economy as economic indicators suggest the world will likely face a recession in 2023.
The global economy currently possesses the world’s weakest growth profile since 2001, excluding the COVID-19 pandemic and the 2008 global financial crisis, according to IMF’s World Economic Outlook seen by Pindula News.
The IMF claimed that soaring energy prices and supply chain disruptions worsened by Russia’s invasion of Ukraine on 24 February this year could send the global economy into a recession. The outlook states:
More than a third of the global economy will contract this year or next, while the three largest economies—the United States, the European Union, and China—will continue to stall. In short, the worst is yet to come, and for many people 2023 will feel like a recession.
The IMF also predicts that global growth will likely remain unchanged in 2022 at 3.2 percent and slow to 2.7 percent in 2023.
The 2023 global growth will be 0.2 percentage points lower than the July forecast with a 25 percent probability that it could fall below 2 percent, according to IMF.
The IMF also says the hyperinflationary conditions across the world will continue.
According to the IMF, China’s economic slowdown is also contributing to a looming recession as its strict COVID policies are forcing economic activity to be artificially curtailed.
China’s lockdowns are contributing to declining global trade as the nation is the world’s second-largest economy and is a massive consumer market.
