IMF Chief Expects World Economy to Grow in 2023

(Patria) - The International Monetary Fund is not expected to lower its growth forecast of 2.7 percent for 2023, said the head of the International Monetary Fund, noting that concerns about the surge in oil prices have not materialized and that labor markets have remained strong, Reuters reports.

IMF Managing Director Kristalina Georgieva said that 2023 will be another "difficult year" for the global economy, and inflation will remain present, but she does not expect another year of consecutive downgrades like last year.

"Growth continues to slow in 2023," she told reporters at the IMF headquarters in Washington. "A more positive part of the picture is the resilience of the labor market. As long as people are employed, even if prices are high, people spend and that helps performance."

Georgieva said the IMF expects the slowdown in global growth to "come to an end" and reverse towards the end of 2023 and the beginning of 2024. Georgieva said there is much hope that China, which previously contributed about 35% to 40% of global growth, but had "disappointing" results last year, will contribute to global growth again, likely from mid-2023. But that depends on how Beijing deals with the coronavirus.

She said that the United States, as the world's largest economy, will likely experience a mild recession, if a recession occurs.