New Delhi CNN —
International Monetary Fund (IMF) Director Kristalina Georgieva has warned that this year will be even tougher for the global economy than the one we left behind.
“Why? Because the three largest economies, the US, the EU and China, are slowing down at the same time,” she said in an interview aired on CBS Sunday.
“We expect a third of the global economy to go into recession,” he said, adding that even in countries that aren't in recession, “it will feel like a recession for hundreds of millions of people.” Ta.
While the United States may finally be able to avoid recession, the situation looks even more dire in Europe, which has been hit hard by the Ukraine war, he said. “Half of the European Union will go into recession,” Georgieva added.
The IMF currently forecasts global growth to be 2.7% this year, slowing from 3.2% in 2022.
China's slowdown will have dire consequences for the world. The world's second-largest economy will be dramatically weakened in 2022 due to strict zero-coronavirus policies, leaving China out of step with the rest of the world, disrupting supply chains and damaging trade and investment flows. Ta.
Chinese leader Xi Jinping said over the weekend that China's economy expanded by at least 4.4% last year, much higher than many economists expected, but predicted 2021 growth would be 8.4%. It was much lower than that.
“For the first time in 40 years, China's growth rate in 2022 is likely to be below the global growth rate,” Georgieva said. “Before COVID-19, China was responsible for 34, 35, 40% of global growth. It's not doing that anymore,” she said, adding that this is a “pretty stressful” time for Asian economies. he added.
“When you talk to Asian leaders, they all start with the question, 'What's going to happen to China? Will China return to higher growth levels?'” she said.
The Chinese government waived coronavirus restrictions in early December, and while their reopening may bring much-needed relief to the global economy, the recovery will be unstable and painful.
China's haphazard economic reopening has unleashed a wave of coronavirus cases, overwhelming the health system and slowing consumption and production in the process.
Georgieva said the coming months “will be difficult for China and the impact on China's growth will be negative,” adding that the country “gradually moves to a higher level of economic performance and will emerge from this year in better shape.” He added that he expects that he will be able to finish. Than this year starts. ”
