Recession announced for industrialized countries – including Germany
The International Monetary Fund (IMF) recently published new forecasts regarding the growth rate of the global economy. According to their information, Germany is expected to fall into a recession this year.
The global economic growth is expected to decline from 3.4 percent in 2022 to 2.8 percent in 2023, and then rise to 3.0 percent in 2024, according to the International Monetary Fund’s (IMF) recent forecasts. The IMF reports that this growth will be weaker and slower due to the effects of the COVID-19 pandemic and the increasing division of the world, such as the Russia-Ukraine conflict. In addition, lower economic growth is projected for industrialized countries compared to emerging and developing countries. While the growth rate for industrialized countries was still at 2.7 percent last year, the expectation for 2023 is only 1.3 percent. For emerging and developing countries, the growth rate of economic power is expected to be 3.9 percent in 2023, 0.1 percent lower than in 2022.
Germany is facing the threat of falling into a recession
The forecast by the IMF for Germany is pessimistic and predicts a recession for the current year 2023. According to the IMF, Germany’s GDP growth was 1.8 percent in 2022. In 2023, the GDP is expected to decrease by 0.1 percent and rise again by 1.1 percent in 2024.
Asian countries are performing better than the Eurozone
According to the Chief Economist of the IMF, Pierre-Olivier Gourinchas, “Many emerging and developing countries are picking up speed.” China is an example of this, as the economy is expected to grow at a rate of 5.2 percent in 2023 due to the reopening of the economy after the abolition of coronavirus measures.