Global economic outlook darkens: WEF report

Worldwide recession increasingly likely with soaring inflation, weak to moderate growth

- Shefali Rekhi

A global recession is increasingly likely as the cost of living soars and expectations for growth are pared back across all regions, according to the latest quarterly report of the Community of Chief Economists at the World Economic Forum WEP).

Almost three-quarters of the 50 economists in the community believe a global recession is at least somewhat likely, reiterating sentiments expressed by the World Bank last week.

Growth in Europe is expected to be weak in 2023 and moderate growth is expected in the United States, the Middle East and North Africa Mena) region, South Asia and Latin America.

While there are expectations of improvement in the Chinese economy in 2023, this contrasts with that for the United States. More than 60 per cent of those polled expect moderate growth or better in the US in 2022, but less than half are as optimistic for 2023.

Rising inflation is cutting into hopes for growth.

Except for China and the Mena region, inflation is likely to persist for the rest of 2022, although it might moderate in 2023, according to the report released late on Wednesday in Geneva.