The managing director of the International Monetary Fund has warned that 2023 will pose greater economic challenges than the past year, with a third of the global economy entering recession during the coming 12 months, including half of the European Union.
Kristalina Georgieva said in an interview on CBS that the economies of the US, EU and China are slowing simultaneously.
Having cut its economic forecasts for 2023 in October, Georgieva’s comments will now fuel expectations that the IMF will slash its forecasts again, possibly at the Davos summit this month.
Separately, in a poll of more than 100 UK-based economists by the Financial Times, most said the UK would face one of the worst recessions and weakest recoveries in the G7.
“The combination of falling real wages, tight financial conditions and a housing market correction are as bad as it gets,” said Kallum Pickering, senior economist at Berenberg.
