February 1, 2023

Taylor Daily Press

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IMF Woman of the Year: “2023 will be more difficult economically than 2022” | Economie

A third of the global economy is likely to be affected by recession this year. Kristalina Georgieva, a senior woman at the International Monetary Fund (IMF), said in an interview with the US channel CBS. According to her, 2023 is likely to be “heavier than the year we leave behind”. “Why? Because the three major economies — the United States, the European Union, and China — are all slowing down at the same time.”

In October, the International Monetary Fund actually lowered its forecast for global economic growth in 2023. This was due to a sharp rise in inflation as a result of the war in Ukraine, along with the reaction of central banks. They quickly raise interest rates in order to limit the increase in the price level, but in doing so they slow down the growth of the economy.

A lot has happened since the IMF’s last major forecast. For example, China canceled the virus non-spreading policy and started the chaotic reopening of its economy. The number of corona infections there is now rising rapidly again, and this is likely to have an impact on growth in the near future. Georgieva has yet to provide specific numbers to CBS. The International Monetary Fund should release an update to its global growth forecasts later this month.

In December, the International Monetary Fund reported after a review that Belgium should make a savings effort of 0.8 percent of gross domestic product (GDP) next year. This means savings of about 4.6 billion euros. During the successive Corona and energy crises, governments have dug into their pockets to support families and businesses. In addition, there has also been an increase in defense spending and an aging population, among other things.

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All of this means that the budget deficit will rise in 2023. The IMF’s mission chief, Mark Horton, asserts that the Belgian deficit is “well above pre-pandemic levels” and well above the level that would allow the debt to stabilize. The IMF is also calling for reform of the system of automatic wage scales.