Business Executives, Economists Predict Recession In 2023 As Davos Kicks Off: Report

A survey by PricewaterhouseCoopers LLP done between October and November last year says that 73 per cent of participants predicted global growth to decline over the coming 12 months

As more than 2,700 businessmen, bankers, and economists travel to Davos, for the first time in January since 2020, worries are expected to run rampant this week.

Source : Getty

As the global leader, corporate executives, and economists gather in Davos for the annual World Economic Forum, talks of a likely Recession in 2023 have been at the forefront of the conversation. Two-thirds of private and public sector chief economists surveyed by the World Economic Forum (WEF) expect a global recession in 2023. 

Additionally, a survey by PricewaterhouseCoopers LLP done between October and November last year says that 73 per cent of participants predicted global growth to decline over the coming 12 months, reported Bloomberg. The survey was conducted among 4,410 business leaders. The report says that two out of five surveyed have expressed concern that their companies may not last a decade.

As more than 2,700 businessmen, bankers, and economists travel to Davos, Switzerland, for the first time in January since 2020, worries are expected to run rampant this week. Recent data have given rise to expectations that economies can still avoid a hard landing, but many are bracing for a downturn in the wake of last year's spike in inflation and the accompanying increases in interest rates by central banks, the report said. 

However, PWC global chairman Bob Moritz told Bloomberg that the level of concern in his company's poll was probably overstated.

The survey found that in 2023, three risks are inflation, macroeconomic volatility, and geopolitical conflict. 

PWC's Moritz said that 40 per cent of chief executives are convinced that “their organizations will not be economically viable in 10 years if they do not transform." He said, “the short term is about how to manage cost pressures and the longer term is about supply chains, climate, technological disruption.”

The report says that 60 per cent of employers say that they do not plan to reduce headcount and 80 per cent will not cut compensation as they hang on to employees rather than go through expensive recruitment processes.

"Power remains with workers who have the right skills," Moritz said.