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Global recession to hit one third of world’s economy

This file photo taken on January 26, 2022, shows the seal for the International Monetary Fund (IMF) in Washington, DC. Photo: AFP

A third of the global economy will be in recession this year, the International Monetary Fund (IMF) has sounded the warning.

Head of the IMF, Kristalina Georgieva said 2023 will be “tougher” than last year as the US, EU and China see their economies slow.

According to the BBC, it comes as the war in Ukraine, rising prices, higher interest rates and the spread of Covid in China weigh on the global economy.

In October the IMF cut its global economic growth outlook for 2023.

“We expect one third of the world economy to be in recession,” Ms Georgieva said on CBS News.

“Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added.

Writing by Muzha Kucha