Davos Panelists: A Shallow Recession is Coming in 2023


The panel of experts at the World Economic Forum 2023 discussed that the expected global recession in 2023 will affect some countries, sectors and companies more than others.

World Economic Forum Photo by Sandra Blaser

17 JANUARY 2023 – The panel of experts at the World Economic Forum 2023 in Davos discussed that the expected 2023 recession will affect some countries, sectors and companies more than others, creating opportunities for entrepreneurs and investors. Douglas Peterson, President and CEO of market intelligence provider S&P Global, said indicators point to a “very mild” recession in the United States, Europe, and the United Kingdom in the first half of the year. At the same time, there should be strong growth in most parts of Asia. He believes that this should mean a shallow overall recession for the world.

The panel believes that the slower growth is part of a positive rebalancing of global economies and supply chains.

“I really believe we will see a reconfiguration of the economy, of economic growth patterns; and that is the real topic, rather than the shorter-term impact of this year,” said Axel Lehmann, Chairman of Swiss bank Credit Suisse.

Mario Centeno, Governor of the central bank of Portugal, described this reconfiguration as an opportunity to redesign globalisation.

“I really hope that this time we can make it in a more inclusive way,” Centeno said. “I would rather prefer to see growth spread across the globe.”

The panel highlighted that much of 2023’s global economic growth is likely to be driven by China, as the country rolls back measures introduced to curb the spread of Covid-19. Laura Cha, Chairman of stock exchange operator Hong Kong Exchanges and Clearing (HKEX), said investors can look forward to a pick-up in China’s manufacturing sector.

“The bright spot in China is really the innovation part: in technology, in healthcare,” Cha said. Over the last three to four years, she added, Hong Kong’s stock exchange has become the second-largest fundraising center in the world for healthcare companies.

The panel also discussed that investors should look for opportunities in sectors like energy, healthcare and others. They also highlighted the transition of the global energy system as an interesting opportunity. This could include battery technologies and energy grid systems. They also stressed that shifting of global supply chains could also create opportunities for investors.

Read more at The Business Times

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