The chief economists are evenly divided over Prospect of a global slack as well growth And the dynamics of inflation varies in different regions, but most of them of they expect them cost of live for remain Seeing in many countries, according to a survey released on Tuesday by the World Economic Forum (WEF).
The World Economic Forum’s “Senior Economist Forecasts: May 2023” report, which includes responses from leading chief economist of both public And private Sectors that revealed that are equal shares of 45% of Economists see a global slack this year Likely or unlikely.
However, their responses will vary depending on the region. With China reopening, Asia is expected to enjoy the most booming economic activity. half of Economists expect moderate, strong economic growth at 43% growth this year in Country.
Accordingly, 93% of Senior economists expect moderate growth in East Asia and the Pacific. By comparison, 50% and 75% of Senior economists expect weakness growth in The United States and Europe this year.
Latin America, the Caribbean and sub-Saharan Africa remain At the weakest end of The look, like over half of Double respondents expect growth.
Economists noted a slight uptick in economic inflation in All areas compared to their previous expectations in January 2023.
High inflation set To continue this yearand with 90% and 68% of Economists expect high or very high inflation in Europe and the United States, respectively, with 74% and 73% of Some of them experience either high or very high inflation in sub-Saharan Africa and Latin America and the Caribbean, respectively.
slight majority also The Middle East and North Africa (MENA) region expects region to record This high inflation yearwhile China remains outgoing, with Only 14% expect high inflation year.
according to 79% of Chief economists and central banks face a trade-off Between managing inflation and maintaining the stability of the banking sector. In comparison, 82% would expect a benefit rate rise slowly in the face of financial stability concerns.
Meanwhile, 76% of Economists think central banks will struggle To bring inflation to its target rates.
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according to 76% of chief economist cost of Living in crisis levels in a lot countries.
it costs of The pressures of living are particularly acute in Some developing economies, where local price The World Economic Forum said that the dynamics are exacerbated by the depreciation of the currency in the report.
“with global pay growth struggling for reservation up with the prices risk Is that vulnerable communities will be pushed into more poverty, especially under tightening financial The report warned.
However, despite the latter bank collapses and financial market Turbulence, senior economists expressed confidence in systemic integrity of global markets.
about 69% of Recently respondents are distinguished bank segmental distress as ‘sporadic episodes’ with Limited additional effect. In comparison, 67% say more bank failure or severity financial The occurrence of disturbances to some extent or a high probability in 2023.
More than 80% expect to find companies bank lending more insurance challenge, leading to slow down in investment and activity in the technology sector due to the latter financial flaw.
“they also pointed out the ways-on effects of High interest rates, in particular in the property sector, where two-thirds expect higher rates cause Big upset in 2023-2024, the World Economic Forum said.
“the latest Release of look highlights uncertainty of current Economic developments. Labor markets have proven resilient for Now, however growth remains slow, global Tensions deepen and cost of living remains Seeing in Many countries said Saadia Zahidi, director director at the World Economic Forum, on the findings of the report.
“these results confirm Urgent need for short-term global policy coordination and longer-term cooperation about a new framework for growth That will make inclusion, sustainability and resilience in the economy policy. “
