Half of the European Union will be in recession next year: IMF director

For much of the global economy, 2023 is going to be a tough year as the main engines of global growth - the United States, Europe and China - all experience weakening activity, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Sunday.

“Half of the European Union will be in recession next year. China is going to slow down this year further,” Georgieva said on the CBS Sunday morning news programme “Face the Nation”.

“More uncertainty, more overlap of crises wait for us. Rather than crying for the time we had, we have to buckle up and act more agile,” she emphasised.

The IMF director pointed out that on top of this global economies slowing down high interest rates and the appreciation of the dollar are devastating for many countries, such as Chad, Ethiopia, Zambia, Ghana, Lebanon and Sri Lanka.

She further stressed that it is very important for the IMF to solve the debt problem in those countries. “This is why at the IMF, we are working very hard to press for debt resolution for these countries,” Georgieva said.

Helping Ukraine

Moreover, the IMF managing director spoke about Russia’s invasion of Ukraine and the need to support Kyiv financially. “We are working on providing support for Ukraine. So far, out to the international financial institutions, we have provided the largest amount of financing for Ukraine, 2.7 billion dollars in emergency financing, and we are working for 2023 to be a significant part of the support for Ukraine,” she stated.

Kristalina Georgieva also mentioned Europe’s determination to become energetically independent from Russia, despite possibly having to cope with a tough winter and an increase in energy prices.