The Strategist

IMF chief: US can avoid recession in 2023

01/13/2023 - 09:56

According to Kristalina Georgieva, managing director of the International Monetary Fund (IMF), there is mounting evidence that the US may avoid recession this year. According to the IMF, the US GDP will increase by 1% in 2023.

Ms. Georgieva claims that despite interest rate increases, the US labor markets are still robust and consumer demand is high. The US economy, according to her, "has more varied sources of development."

"This provides some justification for not anticipating a recession in the US (in 2023). Even if there is a recession, it would likely be extremely modest, in my opinion," said Kristalina Georgieva during a briefing (quoted by Reuters).

Last year, the US Business Economics Association forecasted a recession in two years. According to the IMF, this year will be challenging for the majority of nations since growth in the world's three largest economies — the US, the EU, and China — is slowing concurrently. Inflation in the US decreased from 7.1% to 6.5% annually in December.