The head of the IMF predicted a recession in the EU and a slowdown in the global economy

In the coming year, the three largest world economies: usa , CHINAand the EU will slow down, and this will happen at the same time. The coming year will be harder than the last.

For much of the global economy, the new year 2023 will be tough, as the main engines of global growth - the US, Europe and China - will face slower growth and weakening economic activity. This opinion was expressed by the Chief Executive Officer of the International Monetary Fund Kristalina Georgieva in an interview with the American CBS channel.

“This [recession] is what we will face. For much of the global economy, the new year will be harder than the one we're leaving behind. Why? Because the three main economies - the US, the EU and China - will slow down at the same time, ”said the HEAD of the fund, excerpts from an interview with which were published on Twitter (the social network is blocked in RUSSIA) of the channel.

The Central Bank announced the risk of a recession with a sharp increase in the production of goods Economics

According to her, the US economy is more resilient, and the US can avoid recession, and even now the labor market in the country remains quite confident. According to Georgieva, the EU has been hit hard by the conflict in Ukraine. “Half of the EU will be in recession next year. China will continue to slow down further, next year will be difficult for China,” she said.

The head of the IMF also predicts a global increase in spending. “After the pandemic, supply chains are being rebuilt, and manufacturers can not chase the cheapest labor and raw materials, but balance between the cost of production and the sustainability of the business. This can increase the level of costs,” she said.

Earlier, experts from the Center for Economic and Business Research (CEBR) said that the world will face a recession in 2023. “It is likely that the global economy will face a recession next year as a result of higher interest rates in response to higher inflation,” Kay Daniel Neufeld, DIRECTOR and head of forecasting at CEBR, told BLOOMBERG.

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In 2022, the global economy experienced an inflationary shock on a scale not seen since the early 1970s, the authors of the CEBR forecast say. Supply chain disruptions caused by the covid-19 epidemic and changing consumer demand patterns in 2021 led to problems, to which 2022 added rising energy prices due to sanctions against Russia. The effects of this shock are felt all over the world, but especially the rise in energy prices has affected the European economies.