Half of the European Union will be in recession in 2023, according to the International Monetary Fund. The 3 largest world economies: United States, China and European Union are slowing down, all together.
Half of the countries of the European Union will be in recession next year, said the head of the International Monetary Fund (IMF), Kristalina Georgieva, in an interview with the American television channel CBS. The phenomenon of recession is often a vicious phenomenon. As families have to pay exorbitant bills, for example, they generally consume less, which leads to a slowdown in the economy. As a result, we often find ourselves with job losses, therefore families who are impoverished, who consume less, and so on. In short, the cycle amplifies.
The EU has been “very affected by the war in Ukraine”
Kristalina Georgieva also warned that the global economy will be in trouble beyond 2022. “We expect a third of the global economy to be in recession”, she said. Ms. Georgieva explained, during the interview with the show “Face the Nation“from CBS, that”the three largest economies – the United States, the European Union and China – are all slowing down together“.
Last October, the IMF warned that a third of the global economy would contract and that there was a 25% chance that global gross domestic product would grow by less than 2% by 2023, which the IMF considers a global recession. The IMF chief paints a different picture of the largest economies. “While the United States may be able to avoid a recession”the EU has been “very affected by the war in Ukraine”.
As a result, she predicts that half of the EU will be in recession this year. At the same time, China is experiencing “a difficult year”. “This translates into negative trends all over the world. And when we look at emerging markets in the developing world, the situation is even worse.”Ms. Georgieva said.
She hopes the United States can ease the situation. “If the resilience of the American labor market continues, the United States can help the world through a very difficult year.”
