A new year and happy vibes and positive thoughts only. Right? Well, not when recession is around- isn’t it?
Take for instance, the figurehead of the International Monetary Fund, who’s had a rather telling observation to make, one that doesn’t make things seem rosy.. well, not one bit.
Whilst we have only just evidenced day 2 of a brand new year, it appears as though there could be trouble for no less than a third of the world in 2023.
So how is this and what has actually happened?
Recession was being considered one of the biggest pain points, for the lack of a better expression, and that was true for the last quarter of 2022. But guess what, if the economic slowing down persists the way it is – or so it seems- then recession may actually begin to affect us in 2023 the way one would not have imagined it.
This isn’t the kind of news one would have expected especially with 2023 having just begun. But here’s what is of fundamental importance:
“We expect one-third of the world economy to be in recession. Even in countries that are not in recession, it would feel like a recession for hundreds of millions of people,” shared Kristalina Georgieva in a recent statement issued to the worldwide public about the expected state of affairs.
But that’s just the tip of the iceberg; in order to understand the real depth of the crisis that could be, one needs to understand the following in greater detail:
“Global growth is forecast to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic,” Ms. Georgieva continued.
That being said, what’s important to know how badly might the biggest or most economically productive countries be hit with the coming of the recession.
To that end, one is compelled to ask whether China will be affected by the setting in of the recession.
And here’s what the Bulgaria-born Kristalina Georgieva had to say on what appears to be a pressing matter:
“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!”
Though that being told, what might happen to the other parts of Asia, those that are noted for being economically robust regions such as a Hong Kong, Singapore and India?
It is well noted that India is no longer just a tiger economy of Asia; as a matter of fact, it is the fifth largest economy of the world right now.
How badly might India come to be hit with recession expected to set in as the year wears on? These are relevant questions that will need some hard and keenly sought answers, the likes of which can only come from seasoned experts.
Rumour mongering, one supposes, won’t do!