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IMF: recession will affect a third of the world economy in 2023


January, 03 2023
watermark Economic news

Representatives of the International Monetary Fund (IMF) predict that the recession will affect a third of the world economy in 2023. At the same time, the coming year will be tougher for the global economy than 2022.


The fact is that the three major economies of the world, the United States, the European Union and China, are slowing down at the same time, so it is logical to expect that one third of the world economy will be in recession. Analysts note that even residents of countries whose economies will not decline will still feel the detrimental effects of the crisis.


The IMF also clarified that the US may eventually avoid a recession, while the situation in Europe looks more gloomy, as European countries have suffered more from the conflict in Ukraine. 


As for China, here, for the first time in 40 years, the country's economy is likely to be at or below global growth. Before the COVID-19 pandemic, China provided 35-40% of the global recovery, but it will be difficult to count on this in the near future, since it is quite a busy time for China. However, according to the fund's forecasts, China will gradually move to higher economic indicators and finish the year with better results.


In general, the IMF predicts that world GDP will increase by 2.7% this year after a 3.2% growth by the end of 2022.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.