The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that the global economy is set to face a difficult year, with one-third of the world projected to enter a recession.
Speaking on CBS’s Face the Nation, Georgieva said that even countries that are not officially in a recession will “feel like a recession for hundreds of millions of people”.
The IMF chief cited the ongoing Russia-Ukraine conflict, the resurgence of COVID-19 in China, and rising inflation as key factors contributing to the economic downturn.
Georgieva also noted that China’s economy is likely to experience slow growth due to the pandemic’s impact on production, while the US may be able to avoid recession due to its strong labor market.
Georgieva added that emerging markets in developing economies are facing an even more dire outlook due to interest rate hikes and a strong US dollar.
