AMN / WEB DESK
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said the three big economies the United states, Europe and China are all slowing down simultaneously. For much of the global economy, 2023 is going to be a tough year as the main engines of global growth.
In October, the IMF cut its outlook for global economic growth in 2023, reflecting the continuing drag from the war in Ukraine as well as inflation pressures and the high interest rates engineered by central banks like the US Federal Reserve aimed at bringing those price pressures to heel. Since then, China has scrapped its zero-Covid policy and embarked on a chaotic reopening of its economy, though consumers there remain wary as coronavirus cases surge.
IMF’s stance on global economic growth in 2023, released in October 2022, highlights the influence of the ongoing Russia-Ukraine war and the surge in inflation and interest rates. Central banks like the US Federal Reserve monitor such rates to impact the prices.
The rejuvenation of China’s economy marked its upliftment of the zero-Covid policy. Amid the surge in coronavirus cases, Chinese President Xi Jinping urged the citizens to put more effort as China enters a ‘new phase.’ However, Georgieva said, “For the first time in 40 years, China’s growth will be equal to or below the global growth.”
Georgieva warned that the rapid spread of COVID-19 infections would drag down the regional and global economy. The recent wave might get worse once people start travelling, she added.