At the turn of the new year, the head of the International Monetary Fund (IMF), Kristalina Georgieva, warned that at least one-third of the global economy may slip into recession in 2023. JUSTICE NWAFOR looks at what this means for Nigerians, especially the 133 million who are already multidimensionally poor.
The International Monetary Fund (IMF) broke what seemed to be sad news just as the new year got underway. One in three nations will experience a recession in 2023, the managing director of the Fund, Kristalina Georgieva, warned.
On the CBS Sunday morning news program, Face the Nation, Georgieva predicted that the coming year would be “tougher than the year we leave behind.” “Why? Because the three big economies – the US, EU and China – are all slowing down simultaneously,” she said.
The IMF chief further explained that “We expect one-third of the world economy to be in recession. Even countries that are not in recession, it would feel like recession for hundreds of millions of people.”
She added, “For the next few months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region would be negative, and the impact on global growth would be negative.”
She claims that because of its robust labour market, the US has a better chance of avoiding global contractions. “The US economy is remarkably resilient… (and) may avoid recession. We see the labour market remaining quite strong,” she said.