International Monetary Fund Warns of Tough Financial Year for Global Economy in 2023

• Experts predict that 2023 will bring more financial hardships globally with one-third of the international economy under threat of recession
• The IMF claims that recession may happen because the three biggest economies, the US, EU and China are trending downwards
• Russia's war in Ukraine is a major contributing factor as it is severely impacting both the food and energy markets

WASHINGTON D.C - The global economy is heading into choppy water as the International Monetary Fund (IMF) warns that 2023 will be a tougher financial year than the ones before.

The IMF's Managing Director Kristalina Georgieva said the organisation anticipates that a third of the world's economy will go into a recession. This is because three of the biggest economies, the US, the European Union (EU) and China are slowing down at the same time.

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Georgieva claimed that the US might avoid a recession because of the resilience of its labour market while China will experience a tough year despite reopening after three years of strict pandemic measures.

Business Tech reported that half of the EU will be in recession after the grouping has been severely affected by the Russia-Ukraine war.

According to News24, Russia's war on Ukraine is a contributing factor and continues to impact the food and energy markets.

Though global inflation rates are expected to decline, they will still stay excessively high. The IMF predicts that inflation will decrease to 6.5% from 8.8% in 2022.

Embattled China Evergrande promises to repay debts in 2023

In another story, Briefly News reported China Evergrande promised to pay back its debt in 2023, as the property giant faces a restructuring. This follows Beijing's crackdown on excessive borrowing and rampant speculation in the real estate sector.

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European markets start New Year on high note

In an email seen by AFP, Evergrande chairman Hui Ka Yan informed employees that "2023 is a key year for Evergrande to fulfil its corporate responsibility and do everything in its power to ensure the delivery of construction projects".

"As long as everyone at Evergrande pulls together, never gives up, (and) works hard... we will certainly be able to complete the tasks of guaranteeing deliveries, repaying all kinds of debts, and resolving risks," Hui wrote.

Source: Briefly News