Heads of International Monetary Fund and World Bank Says Global Economy Faces Recession in 2023
Managing Director of the International Monetary Fund Kristalina Georgieva and President of the World Bank David Malpass believe that a recession is going to rock the world economy in 2023. At a lived-streamed discussion on October 10, 2022, the heads of these international organizations issued this warning.
“There’s risk in real danger of the world recession next year. Some of the advanced economies are slowing in Europe. So, we’ll see where it goes into next year,” Malpass stated.
“I very much agree with you that the risk of recession has gone up,” Georgieva emphasized.
“We have calculated that about one third equivalent that the world economy would have at least two consecutive quarters of negative growth this year and next year,” she added.
“The total amount that would be wiped out by the slowdown of the world economy is going to be between now and 2026 $4 trillion,” Georgieva noted.
For astute observers of economics, such projections are not a shock. The combination of flawed monetary policies, bloated regulatory states, heavy taxation, and the heavy-handed lockdown measures used to fight the Wuhan virus pandemic has created this economic scenario.
And we can blame the political class for all of that. Let’s not fall for the played out scapegoating of the free market for these otherwise state-generated problems.