For much of the world economy, 2023 will be a tough year as the main engines of global growth the United States, Europe and China – all experience waning activity, the head of the International Monetary Fund said on Sunday. In October, the IMF lowered its outlook for global economic growth in 2023, reflecting the continued slowdown caused by the war in Ukraine, as well as inflationary pressures and high interest rates created by central banks such as the United States Federal Reserve System to reduce these price pressures.
China has scrapped its zero-COVID policy and embarked on a chaotic reopening of its economy, even as consumers there remain cautious as coronavirus cases rise. In his first public comments since the policy change, President Xi Jinping called for greater effort and unity in a New Year’s address on Saturday as China enters a “new phase”.
Kristalina Georgieva said “The new year will be “tougher than the year we leave behind,” Why? Because the three major economies the US, the EU and China – are all slowing at the same time, For the first time in 40 years, China’s growth in 2022 is likely to be at or below global growth. The “fire” of expected COVID infections in the coming months is likely to hit its economy further this year, slowing both regional and global growth”.
She also added “The next few months would be difficult for China and the impact on Chinese growth would be negative, the impact on the region would be negative, the impact on global growth would be negative”.
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