IMF Chief Says 2023 Will Be Tough For Global Economy As US, EU, China 'Slowing Down Simultaneously'

International Monetary Fund Managing Director Kristalina Georgieva reportedly said on Sunday that 2023 is going to be a tough year for much of the global economy, as the main engines of growth including the U.S., Europe and China, are all experiencing weakening activity.

What Happened: “The new year is going to be tougher than the year we leave behind,” Georgieva said, according to a Reuters report citing CBS. 
“Why? Because the three big economies — the U.S., EU and China — are all slowing down simultaneously,” Georgieva added.
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Georgieva pointed out that for the first time in 40 years, China's growth in 2022 is likely to be at or below global growth.

Furthermore, a "bushfire" of expected COVID infections there in the months ahead may further hit its economy this year and drag on both regional and global growth, she added.

"I was in China last week, in a bubble in a city where there is zero COVID," Georgieva said. "But that is not going to last once people start traveling."

"For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative," she stated according to the report.

U.S. Economy: Georgieva said the U.S. economy is standing apart and may avoid outright contraction, which may afflict as much as a third of the world's economies.

She said the “U.S. is most resilient,” and it "may avoid recession. We see the labor market remaining quite strong."

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