Three largest economies’ slowdown. IMF warns of more challenging year for global financial system

This was reported by IMF Managing Director Kristalina Georgieva. 

"Three big economies — the US, EU and China — are all slowing down simultaneously," she said.

She claims since the main drivers of global growth - the United States, Europe and China - are experiencing weakening activity, 2023 will be difficult for most of the world economy.

Georgieva added that in October, the Fund lowered its forecast for global economic growth in 2023, taking into account the impact of Russia's war in Ukraine, as well as inflationary pressures and high-interest rates adopted by central banks in many countries.

But then China lifted its zero-COVID policy and embarked on a chaotic recovery of the national economy, although consumers remain cautious as the number of coronavirus cases is constantly growing. So, Chinese leader Xi Jinping recently called for greater efforts and unity as China enters a "new phase."

"For the first time in 40 years, China's growth in 2022 is likely to be at or below global growth," the IMF managing director said.

At the same time, Georgieva also said that the United States is the most resistant to the economic slowdown and can avoid a recession because "the labor market remains quite strong."