The year 2023 has been a pivotal year for the global economy. And the trends for the year which has just begun are not particularly positive, according to the International Monetary Fund (IMF). The institution indeed predicts a massive recession, with major economies that will slow down sharply. The point on what we can expect.
IMF forecasts for 2023
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) spoke yesterday at the microphone of CBS, and shared her predictions for the coming year. In particular, she pointed to a new trend: China’s growth should match global growth, or even be lower for the year 2022. It’s the first time in forty years that it is, and that is of course due to a big slowdown in China’s business amid the Covid-19 pandemic.
However, the US and European economies will not be any happier, if we are to believe the forecasts of the director of the IMF:
“For most of the global economy, this is going to be a tough year, tougher than the year just ended. Why ? Because the three major economies – the United States, the European Union and China, are all slowing down simultaneously.»
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Europe particularly affected
Kristalina Georgieva notes that the United States should, however, fare better than other regions, especially Europe, which has been badly affected by the war in Ukraine:
“Half of the European Union will be in recession next year. China will also slow down even more this year.»
And emerging markets will likely suffer a double jeopardy. Very dependent on the dollar, they will therefore be particularly exposed, while their economies do not have the solidity of the three major economic territories. Hence a particularly pessimistic forecast:
“We are waiting for each other that a third of the world economy is in recession. And even in countries that do not experience a recession, similar effects will be felt for hundreds of millions of people.»
The conclusion of these IMF predictions is also that everything will be more uncertain. Kristalina Georgieva indeed notes that “more uncertainty and more connected crises await us“. The global economy, and conventional financial models, are likely at a crossroads. Is a transition to a new model underway? In any case, the cryptocurrency ecosystem hopes so.
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Source: CBS – Image: IMF via Flickr (CC BY-NC-ND 2.0)
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