2023 will be a tough year for world economy, says IMF chief

The International Monetary Funds' (IMF) Managing Director Kristalina Georgieva on January 1 said that 2023 will be a ‘tougher’ year for the global economy as compared to 2022. 

Georgieva said this during an interview on Sunday morning on the first day of the new year. 

As per Georgieva, the main engines of global growth -- the United States (US), Europe, and China -- all are experiencing weakening activity.

''2023 is going to be tougher than the year we leave behind because three big economies -- the US, EU, and China -- are all slowing down simultaneously'' IMF Managing Director Kristalina Georgieva was quoted as saying by Sunday morning. 

It is worth mentioning that the ongoing drag of the Ukraine War, inflationary pressures, and the high-interest rates imposed by central banks like the U S Federal Reserve to quell those price pressures were all factors that led to the IMF cutting its projection for global economic growth in 2023 in October.

Meanwhile, China has abandoned its zero-COVID policy and started to reopen its economy, but as coronavirus infections are rising, customers there in the country are still scared.

"For the first time in 40 years, China's growth in 2022 is likely to be at or below global growth," Georgieva added.

She further said that COVID infections are likely to hit the economy further this year and drag on both regional and global growth.

" In the coming months, it would be tough for China as the impact on Chinese growth would be negative. The impact on the region will be negative, the impact on global growth will be negative," she added.

Commenting on the US economy, Georgieva said that the economy of U S is standing apart and may avoid the outright contraction that is likely to afflict as much as a third of the world's economies.

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