IMF: 2023 will be another difficult year for the global economy – Economy

Nevertheless, she does not expect that the growth forecast of 2.7 percent for 2023 will have to be revised downwards, said the director of the International Monetary Fund (IMF) at a press conference in Washington.

The International Monetary Fund (IMF) is unlikely to adjust its growth forecast of 2.7 percent for 2023 downwards. “Growth will continue to slow in 2023,” International Monetary Fund (IMF) Director Kristalina Georgieva told reporters at the IMF’s Washington headquarters on Thursday (local time).

2023 will be another difficult year for the global economy and inflation would remain stubborn, but she doesn’t expect consecutive downgrades like last year, barring unexpected developments. The IMF believes the slowdown in global growth will bottom out and reverse towards the end of 23 and early 24.

Georgieva noted that fears of an oil price hike have not materialized and labor markets remain strong. “The positive lies in the resilience of labor markets. As long as people are employed, even when prices are high, they will spend… and that has helped the economy.”

However, there are still major uncertainties, including a major climate event, a major cyber attack or the risk of an escalation of the Russian war in Ukraine, for example through the use of nuclear weapons. “We are now in a world that is more prone to crises and we have to be open to the fact that there could be risks that we don’t even think about,” said the IMF chief. “We’ve seen that in recent years. The unthinkable happened twice.”

China as the largest single factor

Georgieva also urged China to continue reviving its economy, calling the country’s transition from a “zero Covid” policy to more normal dealings as likely the single most important factor driving global growth in 2023.

“The most important thing is that China stays on course and doesn’t shy away from reopening,” said Georgieva, who visited the world’s second-largest economy last month for the first time since the pandemic broke out. “If they stay the course, China will be a positive contributor to average global growth by around mid-year,” she said, calling the country’s performance in 2022 “very disappointing.”

Also next month, on the sidelines of a meeting of central bankers and finance ministers in India, the Group of the 20 largest economies, together with the IMF and the World Bank, will host a global roundtable on public debt to bring together representatives from governments, borrowing countries and private lenders to discuss the challenges to discuss.

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