'The worst is yet to come': IMF predicts recession in 2023

DeJuan Hoggard Image
Tuesday, October 11, 2022
The International Monetary Fund predicts recession in 2023.
The report comes on the heels of the U.S. Federal Reserve raising interest rates in late September.

The International Monetary Fund published its World Economic Outlook report today and its findings are direct.

"In short, the worst is yet to come," the outlook predicts. "For many people, 2023 will feel like a recession."

The report comes on the heels of the U.S. Federal Reserve raising interest rates in late September.

"It's devastating," said Wake County retiree Kate Whitlock. "I'll probably cry on my way home. It's kind of something you just have to let out before you get home," she said as she left BJ's Wholesale Club. In an effort to stretch her money, Whitlock makes her grandson's baby food and his clothes. "Find out how much you're spending before you get to the register because you'll put stuff back," she added.

The IMF is basing their outlook on monetary policy's response around the world to continued inflation, the impact of the war in Ukraine, and pandemic-related lockdowns and supply chain disruptions, perhaps most notably in China.

Additionally, the IMF is predicting global growth to be just 2.7% in 2023, down from what forecasters predicted in July, and from the 6% that was witnessed in 2021.

"I hope I've planned well," said retired field engineer Lane Rushing. "I do have some worries. We're on fixed incomes. So every time there's a price increase with the gas or the groceries or whatever, it usually hits us a lot harder than someone who is out there working every day."

"Cut back on everything you can," his wife added.

North Carolina Central University business professor, Kofi Amoateng, suggests North Carolinians consider the language in the International Monetary Fund's outlook.

"There are so many assumptions. And so many assumptions may not come true. They're relative," said Amoateng in an interview with ABC11. "So predictions are not a reality. They are predicting."

Further, Amoateng said inflation affects the rich and the poor, but more so the poor. His suggestion to Americans and North Carolinians is to make sure they have money in their savings account, hold onto a job if you currently have one, and cut back on spending as we approach Black Friday and Christmas.

"It's OK to be generous, but not too generous," said Amoateng.