The International Monetary Fund (IMF) has warned about an impending global recession projected to impact a third of the global economy.
Kristalina Georgieva, the head of the IMF, said 2023 will be “tougher” than last year.
“We expect one third of the world economy to be in recession,” Ms Georgieva said.
“Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added.
She also predicted that China, the world’s second largest economy, would face a difficult start to 2023.
“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative,” she said.
The BBC had Katrina Ell, an economist at Moody’s Analytics in Sydney, give her assessment of the world economy.
She said, “While our baseline avoids a global recession over the next year, odds of one are uncomfortably high. Europe, however, will not escape recession and the US is teetering on the verge.”
The IMF cut its outlook for global economic growth in 2023 in October, due to the war in Ukraine as well as higher interest rates as central banks around the world attempt to rein in rising prices.