THEO VAN GOGH Top of the Agenda – WORLD RECESSION FOR ALL

 
IMF Director Warns One-Third of World Could Face Recession This Year
For most of the global economy, 2023 will be “tougher than the year we leave behind,” International Monetary Fund (IMF) Managing Director Kristalina Georgieva said in a CBS interview. She said the economies of the United States, China, and the European Union (EU) are all slowing down. While Georgieva said the United States “may avoid a recession,” the Wall Street Journal found that more than two-thirds of economists at twenty-three large financial institutions are projecting a U.S. recession this year.

 

Georgieva also said that the war in Ukraine and COVID-19 will continue to strain the economies of the EU and China, respectively. She added that countries should work to secure their supply chains but warned that dividing the global economy into U.S. and Chinese blocs could “chop $1.5 trillion” from global gross domestic product (GDP) each year.

SION FOR ALL –

IMF Director Warns One-Third of World Could Face Recession This Year
For most of the global economy, 2023 will be “tougher than the year we leave behind,” International Monetary Fund (IMF) Managing Director Kristalina Georgieva said in a CBS interview. She said the economies of the United States, China, and the European Union (EU) are all slowing down. While Georgieva said the United States “may avoid a recession,” the Wall Street Journal found that more than two-thirds of economists at twenty-three large financial institutions are projecting a U.S. recession this year.

 

Georgieva also said that the war in Ukraine and COVID-19 will continue to strain the economies of the EU and China, respectively. She added that countries should work to secure their supply chains but warned that dividing the global economy into U.S. and Chinese blocs could “chop $1.5 trillion” from global gross domestic product (GDP) each year.

 

Analysis
“Changes in the nature of globalization, widespread labor shortages, and the imperatives of climate change have created supply difficulties and put already-challenged growth models under even more stress,” Mohamed A. El-Erian of the Queens’ College at Cambridge University writes for Foreign Affairs.

“The danger [in U.S. moves to decouple from China] is that such actions go beyond sensible precautions, such as shoring up security in critical supply chains and policing cyberspace, and move into beggar-thy-neighbor protectionism. The world has seen that movie before—and does not need a re-run,” CFR’s Edward Alden writes for Foreign Policy.

 

This Backgrounder unpacks the contentious U.S.-China trade relationship.