Davos expects a global recession in 2023.

Two-thirds of leading private and public sector economists surveyed by the World Economic Forum (WEF) expect a global recession in 2023. The current high inflation, low growth rates, high indebtedness, and a high degree of fragmentation reduce the incentives for investment needed to restore growth and improve the living standards of the most vulnerable, noted WEF Director Saadia Zahidi. The WEF study found large regional differences in inflation expectations: in China only 5% expect high inflation in 2023, compared to 57% in Europe, where the impact of last year’s rise in energy prices spread throughout the economy. Most economists also predict further tightening of monetary policy in Europe and the US, 59% and 55%, respectively. However, the cost of living crisis may be nearing its peak, and most expect it to ease by the end of 2023.