“O come, let us worship and bow down: let us kneel before the LORD our maker.” Psalms 95:6 (KJV)
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he International Monetary Fund (IMF), a financial agency of the United Nations, warned Tuesday that the “worst is yet to come” for the global economy as economic indicators suggest the world will likely face a recession in 2023.
The global economy currently possesses the world’s weakest growth profile since 2001, excluding the COVID-19 pandemic and the 2008 global financial crisis, according to the agency’s World Economic Outlook. The IMF claimed that soaring energy prices and supply chain disruptions exacerbated by Russia’s invasion of Ukraine could send the global economy into a recession.
“The worst is yet to come, and for many people 2023 will feel like a recession,” the outlook states. The IMF also predicts that worldwide inflation will peak toward the end of 2022, increasing from 4.7% in 2021 to 8.8%.
Although the agency forecasts that global inflation will fall to 6.5% in 2023 and 4.1% by 2024, it notes that high levels of inflation will remain “longer than previously expected.”
Global growth will decrease in 2023 to 2.7%, with a 25% probability that it will fall below 2%, according to the report.
The global energy crisis, particularly in Europe, will weaken economies further as shortages of natural gas are driving countries to spend billions to help citizens pay their soaring electricity bills, according to the IMF. Russia, which accounted for 40% of the European Union’s (EU) gas consumption, has continuously disrupted gas deliveries into Europe in response to EU sanctions.
“Winter 2022 will be challenging for Europe, but winter 2023 will likely be worse,” the report reads.
