IMF’s warning, fear of economic recession in 2023; Things will get worse if inflation rises

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that the year 2023 may be worse economically than 2022. He feared that the situation could get worse due to the rise in inflation. Although in his statement, he described the increase in India’s growth rate as better, but also warned that the global recession can engulf the developing countries of the whole world to the powerful countries.

IMF Chief Kristalina Georgieva said in an interview with CNBC-TV18 that “global inflation could be worse than expected”. To the question of whether the world is now headed for a recession, the IMF chief said, “What I can tell you is that much more than we thought, the consequences of the corona pandemic, the Ukraine-Russia post-war, are the consequences of inflation.” may come forward.”

He said that the US Federal Reserve has been increasing the interest rate continuously and it is expected that every effort will be made to control inflation going forward. Georgieva said that all the central banks of the world follow the policies of the US Federal Reserve Bank. The IMF Chief said that it is difficult to say how challenging 2023 will be in terms of economic compared to this year, but it can definitely be estimated that the coming year is going to be challenging.

what is the reason

According to the IMF Chief, the corona epidemic is currently showing its side effects in many countries of the world. Despite the vaccine, in many countries of Europe including China, the corona epidemic has affected from business people to common people. Apart from this, the ongoing war between Ukraine and Russia has affected the world. The situation has worsened after European countries imposed sanctions on Russia. Inflation is at its peak. Georgiev says that the impact of all these important developments may be more in the coming year 2023. Although he did say that it is too early to say whether there will be a global recession or not.

praise of indian economy

Georgiev said while praising India. “By the way, the growth in India’s growth rate is a good sign. The quarterly rate has done well and has registered a growth of over 13 per cent.” But it must be said that India is also performing worse than the original estimates.

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