.jpg)
.jpg)
“We expect one-third of the world economy to be in recession,”
✓ The IMF already warned in October that more than a third of the global economy will contract and that there is a 25% chance of global GDP growing by less than 2% in 2023, which it defines as a global recession.
The IMF this week warned of a worsening outlook for the global economy, highlighting that efforts to manage the highest inflation in decades may add to the damage from the war in Ukraine and China's slowdown. , Bloomberg
IMF Chief Georgieva Warns of ‘Tough Year’ for World Economy - BNN Bloomberg
Kristalina Georgieva,
managing director of the International Monetary Fund (IMF), speaks at a
news conference during the annual meetings of the IMF and World Bank
Group in Washington, DC, US, on Thursday, Oct. 13, 2022.
(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
"International Monetary Fund Managing Director Kristalina Georgieva warned that the global economy faces “a tough year, tougher than the year we leave behind.”
“We expect one-third of the world economy to be in recession,” Georgieva told CBS’s ‘Face the Nation’ in an interview aired Jan. 1. “Why? Because the three big economies — US, EU, China — are all slowing down simultaneously.”
.jpg)
The IMF already warned in October that more than a third of the global economy will contract and that there is a 25% chance of global GDP growing by less than 2% in 2023, which it defines as a global recession.
.jpg)
.jpg)
Examining the three biggest economies on CBS, Georgieva painted a mixed picture of their ability to withstand the downturn.
While “the US may avoid recession,” the European Union has been “very severely hit by the war in Ukraine — half of the EU will be in recession next year,” she said. At the same time, China faces a “tough year.”
.jpg)
‘Negative Trends’
.jpg)
Data published on Saturday showed that China’s abrupt reversal of its Covid Zero policy pushed economic activity in December to the slowest pace since February 2020 as the virus swept through major cities and prompted people to stay home and businesses to shut.
.jpg)
The slowdown in the biggest economies “translates into negative trends globally — when we look at the emerging markets in developing economies, there, the picture is even direr,” Georgieva said.
Purchasing manager index numbers for manufacturing published on Monday showed negative readings across Europe, Turkey and in South Korea. Data published Tuesday are set to reveal similarly dire numbers for Malaysia, Taiwan, Vietnam, the UK, Canada and the US.
Still, the outlook for the world’s largest economy may offer respite.
“If that resilience of the labor market in the US holds, the US would help the world to get through a very difficult year,” Georgieva said."
(Updates with PMIs starting in sixth paragraph)
by Blandine Henault
PARIS (Reuters) – The main European stock markets are expected to start 2023 on a hesitant note, little helped by the closure of many other financial centers and a grim economic outlook.
According to the first indications available, the Parisian CAC 40 could gain 0.06% at the opening, the Dax in Frankfurt would fall by 0.32% while the London Stock Exchange will remain closed on Monday.
Markets are also closed in Japan, China and Hong Kong and will also be in the United States.
In 2022, the CAC 40 lost 9.46%, the German Dax 12.34% and the Stoxx 600 12.9%, its biggest annual drop since 2018. gain 0.91% over the year.
Galloping inflation, accelerated tightening of central banks, war in Ukraine or even COVID-19 in China, the elements were hardly favorable to the financial markets last year and the outlook for this new year remains gloomy.
✓ Investors anticipate a continued rise in the cost of credit in Europe and the United States, at the risk of a profound deterioration in the economy. On Sunday, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, warned that the new year would be “more difficult than the year we are leaving behind” due to the expected slowdown in the United States, Europe and China.
✓ No clearing is also emerging on the Ukrainian front, where the authorities announced Monday drone attacks against major infrastructure in Kyiv and around the capital.
✓ In China, the COVID-19 epidemic is on the rise even as the Lunar New Year festivities are expected to encourage large travels, which has prompted many countries to introduce mandatory tests for Chinese travelers.
Airbus and Atos could host the first session of 2023 in Paris as Les Echos reported that Airbus was considering a minority stake in the capital of Evidian, the digital and cybersecurity business arm of Atos that the services group computers will split.
AT WALL STREET
✓ The New York Stock Exchange won’t begin 2023 until Tuesday after posting its first annual decline since 2018 and its steepest one-year decline since the 2008 financial crisis.
✓ On Friday, the Dow Jones index fell 0.22% to 33,147.25 points, after a decline of 8.9% over the whole of 2022.
The broader S&P-500 fell 0.25% to 3,839.50 points. It fell 19.4% last year.
For its part, the Nasdaq Composite fell 0.11% to 10,466.48 points, posting a fall of 33.1% over the whole year while growth stocks, very represented in the technology index , suffered from monetary tightening.
IN ASIA
Only the Seoul Stock Exchange was open on Monday in Asia, the Kospi index having fallen by 0.48% with the decline in values linked to tourism, the South Korean authorities having announced a compulsory test for travelers from China. Manufacturers of electric cars, such as Hyundai Motor and Kia Corp, on the other hand, benefited from more positive prospects in the United States.
In 2022, the Kospi lost more than 25% while in Tokyo, the Nikkei index, which will not open until Wednesday, lost more than 9%.
In China, the CSI 300 index lost 21.6% last year, its worst annual performance since 2019, while the Hong Kong Stock Exchange lost 15.4%, its worst year since 2012.
EXCHANGES/RATES
Trading is limited in the bond and currency markets. The euro fell slightly against the dollar after losing more than 5% against the greenback last year.
Note that Croatia became the 20th member of the euro zone on Sunday, nearly ten years after its entry into the European Union (EU).
(Report Blandine Hénault, edited by Matthieu Protard)
Source: www.challenges.fr
No comments:
Post a Comment