International chief economists expect a recession to hit this year.
Majority of the chief economists predicts a global recession for this year, according to a survey by the World Economic Forum.
The results were announced on Monday, when the annual forum of financial leaders and politicians in Davos, Switzerland began. The survey was reported by the Reuters news agency.
Two out of three private or public sector chief economists surveyed expected a global recession in 2023.
About 18 percent thought it was “very likely”. The share is more than double compared to when the survey was carried out last September.
The survey is based on the answers of 22 leading economists. The respondents work in international organizations, such as the International Monetary Fund and investment banks.
There was a large regional variation in the inflation expectations of the chief economists. For example, only five percent of respondents expected high inflation in China, while 57 percent predicted high inflation in Europe.
The majority expected monetary policy to tighten further in Europe and the United States.
Nine out of ten respondents predicted that weak demand and high loan costs would put pressure on companies. This was predicted to lead to international companies trying to reduce their expenses and, among other things, reduce their personnel.
On the other hand, production chain problems are not expected to cause significant harm to business operations again in 2023. The majority of respondents also expected the cost of living crisis to ease by the end of this year.
Threatening there have been various predictions about the recession recently.
Reuters notes that the World Bank reported last week on growth forecasts, which are close to recession figures for many countries.
On the other hand, for example, a giant bank Goldman Sachs last week, economists turned their forecasts for the euro area towards economic growth, and the bank no longer predicts a recession for the euro area this year.
#economy #World #Economic #Forum #poll #Global #recession #Live #coverage #Davos #underway
