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One-third of the world will face recession this year, IMF warns

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Kristalina Georgieva, managing director, International Monetary Fund (IMF), has warned that a third of the global economy will face recession this year.

Georgieva spoke in an interview with CBS, an American broadcast television and radio network, on Sunday.

She said economic activities in the United States, the European Union, and China are all slowing simultaneously.

“We expect one-third of the world economy to be in recession,” the IMF managing director said.

“Half of the European Union will be in a recession this year.”

Georgieva further explained that the rapid spread of Covid-19 in China, especially now that the government has dropped its severe containment policy, means that the country faces a fresh economic blow in the short term.

She said the next couple of months will be “tough for China” due to the spread of the deadly virus.

The projection of the IMF boss aligns with that of Goldman Sachs, a multinational investment bank, that global economic growth will slow to 1.8 percent in 2023.

The IMF, had in October, cut its 2023 outlook for global economic growth, citing the continuing drag from the war in Ukraine as well as inflation pressures and interest rate hikes by major central banks.

“For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative,” Georgieva said.

“For the first time in 40 years, China’s annual growth is likely to be at or below global growth, meaning it could drag down worldwide economic activity rather than propelling it. That has never happened before.”

Georgieva also said the US is likely to escape the worst of the downturn, adding that its strong labour market was likely to help it outperform most other majors.

“The US may avoid a recession because its unemployment is so low,” she said.

“If that resilience  holds in 2023 the US would help the world to get through a very difficult year. The US economy is remarkably resilient.”

Last year, the bank of England said the United Kingdom’s economy was set for a five-quarter recession starting at the end of 2022 — with the gross domestic product (GDP) shrinking.

World

UK former deputy PM John Prescott dies at 86

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Britain’s former deputy prime minister, John Prescott, who served under Tony Blair and with him helped transform the country’s Labour party, has died at 86, his family said on Thursday.

“We are deeply saddened to inform you that our beloved husband, father and grandfather, John Prescott, passed away yesterday (Wednesday) at the age of 86,” a statement read.

Blair, the privately educated lawyer who appointed working-class Prescott to help appease the Labour left as he moved the party to the centre ground, said he was “devastated” at Prescott’s death.

“There was no one quite like him in British politics,” he told BBC radio.

Keir Starmer, who became Labour’s first prime minister since 2010 after a landslide general election win in July, called Prescott “a true giant of the Labour movement”.

“He was a staunch defender of working people and a proud trade unionist. During a decade as deputy prime minister, he was one of the key architects of a Labour government that transformed the lives of millions of people across the nation,” he added.

“So much of John’s work set the path for those of us fortunate enough to follow. From leading climate negotiations to fighting regional inequality, his legacy will live on well beyond his lifetime.”

Prescott, a former merchant seaman and trade union activist who served as a member of parliament for Hull in northern England for four decades, died “peacefully” at a care home, his wife Pauline, and two sons said.

“He did so surrounded by the love of his family and the jazz music of Marian Montgomery,” they added.

Prescott, who was appointed to the House of Lords, suffered a stroke in 2019 and had been suffering from Alzheimer’s. He stopped being a member of the upper chamber of parliament in July because of his health problems.

Plain-speaking, Prescott served for 10 years as Blair’s deputy following Labour’s landslide 1997 general election win. During a campaign stop in north Wales he punched a protester who threw an egg at him.

But he also acted as a mediator between Blair and his finance minister Gordon Brown, who also helmed the transformation of Labour in the 1990s and who had designs on power.

Prescott’s brief included the environment and transport, as well as leading negotiations for Britain for the international Kyoto Protocol on climate change.

Blair said in a 2007 letter to Prescott that he saw his role as “smoothing out colleagues and sorting out colleagues and trouble-shooting”.

“The completely unique Prescott blend of charm and brutality… got you through the decade, kept the government together and above all, gave me a lot of fun. I was lucky to have you as my deputy,” he told him.

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Education

Canada now permits international students to work 24 hours

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Canada has increased the permissible work hours for eligible international students during academic terms from 20 to 24 hours per week.

This adjustment aims to provide greater opportunities for students to gain work experience while maintaining their focus on academics.

Marc Miller, Canada’s Immigration, Refugees, and Citizenship Minister, stressed the intent behind this policy change, saying, “This change will give students more flexibility to manage their time and gain practical experience.”

The decision builds on remarks Miller made in October 2022 when he emphasized the importance of work experience for international students.

At the time, he stated: “With the economy growing at a faster rate than employers can hire new workers, Canada needs to look at every option so that we have the skills and workforce needed to fuel our growth.

“Immigration will be crucial to addressing our labour shortage. By allowing international students to work more while they study, we can help ease pressing needs in many sectors across the country, while providing more opportunities for international students to gain valuable Canadian work experience and continue contributing to our short-term recovery and long-term prosperity.”

Key Changes to the International Student Program
Full-Time Work During Academic Breaks

International students can now work full-time during designated academic breaks, such as summer and winter holidays. These periods allow students to increase their earnings without interfering with class schedules, bolstering their financial stability while continuing their education.

The updated regulations permit students to work up to 24 hours per week during academic terms. This increase offers greater employment opportunities while ensuring students can maintain a sustainable study schedule.

Enhanced Reporting by Institutions

Designated Educational Institutions (DLIs) are now required to submit reports twice yearly to Immigration, Refugees, and Citizenship Canada (IRCC). These reports will confirm students’ enrollment status and academic progress, ensuring compliance with study permit requirements and upholding the integrity of the International Student Program.

Approval for Institution Transfers

Under the new rules, international students must obtain approval before transferring to a different DLI. This requirement ensures adherence to permit conditions and maintains academic standards across Canada’s institutions.

Special Provisions for Quebec Students

In Quebec, eligible international students can work off-campus without a separate work permit, provided they meet specific criteria. Students must be enrolled full-time in post-secondary, vocational, or professional training programs, or vocational training at the secondary level. These courses must be at least six months long and lead to a recognized degree, diploma, or certificate.

By introducing these measures, Canada aims to enhance opportunities for international students while addressing labour shortages in key sectors, ensuring a balance between work experience and academic success.

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World

Trump appoints Elon Musk to lead department of government efficiency

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US President-Elect Donald Trump has appointed Elon Musk, chief executive officer (CEO) of Tesla and SpaceX, to lead a soon-to-be-established Department of Government Efficiency (DOGE).

Musk, owner of X, the microblogging platform previously known as Twitter, was an avid supporter of Trump during the electioneering leading up to the November 5 presidential election.

The former president defeated Vice-President Kamala Harris after securing more than 270 of the electoral college votes required to win the poll.

A statement on Tuesday said Musk would run DOGE alongside Vivek Ramaswamy, a politician and entrepreneur.

It said the duo “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies Essential to the ‘Save America’ Movement’.

“I look forward to Elon and Vivek making changes to the Federal Bureaucracy with an eye on efficiency and, at the same time, making life better for all Americans,” the statement quoted the president-elect as saying.

“Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 Trillion Dollars of Government Spending.”

Trump will take office for a second and final term on January 25, 2025.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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