IMF chief gave a big warning on the global economy in the new year. | The whole world is troubled by the covid epidemic in China.

  

IMF chief gave a big warning on the global economy in the new year :

Whose fear was, that fear is now turning into reality. Where the fear of economic crisis and recession has started deepening in the new year. International Monetary Fund (IMF) chief Kristalina Georgieva gave a big warning. What has the IMF chief said? What is going to happen in 2023? Will tell you everything. A big prediction has been made by the IMF which brought the new year 2023.

 

The International Monetary Fund ie IMF chief said that 2023 is going to be a difficult year for the global economy. Georgieva said that one-third of the global economy will be in recession in 2023. The year 2023 will be more difficult than the year 2022 due to weak economic activities in America, Europe, and China. 

Even a country that is not in the grip of a recession will feel like a recession for millions of people there. But the question is why so? Has slowed economic activity in the three big economies the US, the European Union, and China. In October, the IMF changed its outlook for the global economy in 2023. There was some relief in this. 

For this, the IMF attributed the rising inflation to the Russia-Ukraine war and the increase in interest rates by the US Federal Reserve. Since then China ended its zero covid policy and started reopening its economy. And did this at a time when the coronavirus infection has spread rapidly in the country. 

The IMF chief further warned that China, the world's second-largest economy, will have a difficult start to 2023. China slowed down dramatically in 2022 due to this zero covid policy. For the first time in 40 years, China's growth is expected to be below the global economy's average by 2022. This has never happened before. 

IMF chief said that the next few months will be difficult for China and the impact on Chinese growth will be negative, the impact on the region will be negative, and the impact on global growth will also be negative. The warnings came amid pressure on the global economy from the Russia-Ukraine war, rising prices, high-interest rates, and a new wave of the covid pandemic in China.

 

In this, Georgieva has given a positive statement about the American economy. They said the US economy is isolated and can avoid troubles that are likely to affect one-third of the world's economy. Georgieva said America can avoid recession because we see a very strong labor market in America. Talking about India, we have some relief news from the IMF.

 

Earlier, the IMF, while releasing its annual consultation report for India, said that the Indian economy is growing very strongly in the current financial year. The report said that the real GDP is estimated to grow at 6.8% and 6.1% from the financial years 2022-23 and 2023-24 respectively, much better than earlier.

 

When asked about the risks concerning India, he said that the risks in India are mostly coming from external factors. Talking about the IMF is an international organization consisting of 190 country members that work together to try to stabilize global economies. IMF's major role is to act as an economic early warning system.

The whole world is troubled by the covid epidemic in China.

The whole world is facing troubled by the increasing cases of Corona epidemic in China. The new variant of Corona has again made life difficult for the people. Thousands of people are dying in China. Many people are still getting their treatment done in the hospital. India has also become conscious along with countries around the world.

 

India has increased strictness on people coming from China, Japan, Hong Kong, South Korea, Thailand, and Singapore. China has now started stocking up on raw materials to deal with any disruption in supply from China due to the Covid-19 pandemic in the consumer durables industry.

 

Usually, only one month's stock remains in this process. But now looking at the situation, companies have started stocking for at least 2 to 3 months. Why has this situation happened now? Let us understand it in detail. The infection started increasing after the zero covid policy was withdrawn in China. 

China is not giving correct figures, but experts believe that every day lakhs of new cases are coming there and thousands of deaths are also taking place. The new corona variant BF7 is growing very fast and it is much more infected than the earlier variant. According to health experts, one infected person is contaminating 16 people. 

Now know what is the connection of business with the new variant of covid. China is the global manufacturing hub. If the situation worsens there, then the whole world will have to bear the brunt of it. First, global supply chains may once again be disrupted. Lockdown and strict movement of goods will be affected. 

The little relief from inflation can dominate again and the business revenue of more people will also start falling again. Also, understand what is the relationship between the consumer durable industry and China. Consumer durable products are available in China at a cheaper rate. 

Their manufacturing is done on a large scale in China because these components are available in China at a cheap rate, then countries all over the world import these components from China itself. If this situation worsens, then categories like LED TV panels will be badly affected. 

Since about 40 to 45% of AC and LED components are made in China and from there they are exported all over the world. On the other hand, the Chinese New Year holidays are going to happen in China from the third week of January i.e. from 20 January. Due to the Chinese New Year, the manufacturing plants there are going to remain closed. 

If the plant does not open till February and the condition of covid worsens, then understand that there will be an outcry. Also, know how the Indian company will handle such a situation. Godrej Appliances has told that it is working on a plan to reduce dependence on China for the supply of components. 

The same Dixon Technologies believes that the supply chain from China is still fine and their suppliers have assured them of timely delivery. If there are any ups and downs in the situation, we will try our best to bear the company.

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