By John Ikani
A third of the global economy will be in recession this year, the head of the International Monetary Fund (IMF) has warned.
IMF Managing Director, Kristalina Georgieva issued the warning in an interview with CBS, an American broadcast television and radio network, on Sunday.
According to her, economic activities in the United States, the European Union, and China are all slowing simultaneously.
“We expect one-third of the world economy to be in recession,” the IMF managing director said.
“Half of the European Union will be in a recession this year.
“Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added.
The IMF warning comes as the war in Ukraine, rising prices, higher interest rates and the spread of Covid in China weigh on the global economy.
Georgieva further explained that the rapid spread of Covid-19 in China, especially now that the government has dropped its severe containment policy, means that the country faces a fresh economic blow in the short term.
She said the next couple of months will be “tough for China” due to the spread of the deadly virus.
According to her, the US stands a better chance of escaping global contractions due to its resilient labour market.
According to her, the US stands a better chance of escaping global contractions due to its resilient labour market.
