Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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- For much of the global economy, 2023 is going to be a tough year as the main engines of global growth, the United States, Europe and China, all experience weakening activity, the head of the International Monetary Fund said on Sunday.
- The new year is going to be “tougher than the year we leave behind,” IMF Managing Director Kristalina Georgieva said on CBS’s ‘Face the Nation’.
- “Why? Because the three main economies, the U.S., EU and China, are all slowing down simultaneously,” she said.
- In October, the IMF cut its outlook for global economic growth in 2023, reflecting the continuing drag from the war in Ukraine as well as inflation pressures and the high interest rates engineered by central banks such as the U.S. Federal Reserve aimed at taming price pressures.
- Since then, China has scrapped its zero-COVID policy and embarked on a chaotic reopening of its economy, though consumers there remain wary as coronavirus cases surge. In his first public comments since the change in policy, President Xi Jinping on Saturday called for more effort and unity as China enters a “new phase”.
- “For the first time in 40 years, China’s growth in 2022 is likely to be at or below global growth,” Ms. Georgieva said.
- Moreover, a “bushfire” of expected COVID infections in the months ahead are likely to further hit its economy and drag on both regional and global growth, she added.
- “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,” the IMF chief said.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB
