‘2023 Will Feel Like a Recession,’ IMF Warns

Washington DC: Amid colliding pressures from the war in Ukraine, high energy and food prices, inflation and sharply higher interest rates, the International Monetary Fund (IMF) on Tuesday cut its global growth forecast for 2023.

The IMF warned that conditions could worsen significantly next year.

The Fund said its latest World Economic Outlook forecasts show that a third of the world economy will likely contract by next year, marking a sobering start to the first in-person IMF and World Bank annual meetings in three years.

“The three largest economies, the United States, China, and the euro area will continue to stall,” IMF chief economist Pierre-Olivier Gourinchas said in a statement. “In short, the worst is yet to come, and for many people, 2023 will feel like a recession.”

The IMF said global GDP growth next year will slow to 2.7%, compared to a 2.9% forecast in July, as higher interest rates slow the U.S. economy, Europe struggles with spiking gas prices and China contends with continued COVID-19 lockdowns and a weakening property sector.

You might also like

Comments are closed.