The International Monetary Fund (IMF) has ruled out a global economic recession for 2023. Kristalina Georgieva, the organization’s managing director, expressed caution at the Davos Forum regarding economic recovery. She does not expect “a drastic improvement” in the current growth forecast of 2.7%.
Georgieva has acknowledged that her outlook is “somewhat better than a couple of months ago”, although she is still not “completely optimistic”. Factors such as the resurfacing of China’s growth after the end of its strict policies against the coronavirus, improving inflation, and a good labor market situation are encouraging indicators. However, the leader has warned of the possible effects of the Ukrainian war on the international economy, which could reverse the IMF’s optimistic predictions.
China’s economic potential is critical to driving growth globally. The harsh restrictions that the Asian giant kept in place until a month ago to deal with the spread of the virus predicted a “negative” period for the country’s development, which usually exceeds the world figures for market growth. With this script twist, Georgieva has set the growth forecast for the Chinese economy at 4.4%, almost two points above the international projection.
This Thursday, the IMF communicated its upward revision of economic growth forecasts for Spain in 2022. The agency has placed the forecasts at 5.2%, which represents an improvement of six points compared to the figure considered last November. The financial institution has confirmed that Spain is among the countries that will avoid recession and has endorsed the Spanish economic policy.
The IMF has ruled out a global economic recession for 2023, and the encouraging forecasts of the IMF provide hope for the international economy.