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Two-thirds of chief economists from private and public sectors has predicted a global recession in 2023.
The surveyed economists anticipate further monetary tightening in the United States and Europe this year, and they see geopolitical tensions continuing to shape the global economy, according to a survey released on Monday at the annual World Economic Forum (WEF) in Switzerland.
Some 18 percent of the respondents, more than twice the number in the previous survey in September 2022, considered a world recession “extremely likely.” Only a third of them viewed it as unlikely this year.
According to a WEF statement on the survey, there was a strong consensus that the prospects for growth in 2023 are bleak, especially in Europe and the United States. All the chief economists surveyed expect weak or very weak growth in 2023 in Europe, while 91 percent expect weak or very weak growth in the United States.
“The current high inflation, low growth, high debt and high fragmentation environment reduces incentives for the investments needed to get back to growth and raise living standards for the world’s most vulnerable,” WEF Managing Director Saadia Zahidi said in the statement.
