Third of world economy to hit recession in 2023, IMF head warns
GuardianMAR 16 2023
A deep, protracted recession will manifest thanks to Putin’s invasion of Ukraine, soaring food and energy costs, a catastrophic debt crisis in the developing countries, sky-rocketing inflation, and visible cracks in longstanding geopolitical certainties. Policy actions that could deter the inevitable would worsen inflation — setting the stage for an even worse downturn. While no one can predict how severe and how long it may last, the next 12 months are likely to be difficult.
Despite many grim forecasts, a crippling global recession can be avoided with the right fiscal policies. While 2023 may be tougher than 2022 for the global economy, the upcoming slump does not qualify as a recession. Despite the slow growth rate, many economies have handled the economic pressures better than anyone thought possible six months ago. Positive growth among developing economies may outweigh advanced economies' negative growth, enabling the world to thwart the downturn's effects.