IMF warns third of global economy likely to hit recession in 2023

Logo of the International Monetary Fund (IMF)

A third of the global economy is likely to plunge into recession this year, the International Monetary Fund (IMF) Managing Director Kristalina Georgieva said, warning that 2023 will be "tougher" than last year.

"We expect one-third of the world economy to be in recession. Even countries that are not in recession, it would feel like a recession for hundreds of millions of people," Georgieva told an interview with CBS.

"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 added.

Last October, the IMF trimmed its global economic growth forecast for 2023, reflecting the continuing drag from the Russia-Ukraine crisis, coupled with spiraling inflationary pressures the high-interest rates engineered by major central banks such as the US Federal Reserve in a bid to bring this price squeeze to heel.