World Economic Forum Releases Worrisome Outlook
(WP) The Centre for the New Economy and Society at the World Economic Forum (WEF) has released a new quarterly report this month entitled "Chief Economists Outlook." Among other things, the report includes six economic expectations for the coming months.
Instead of entering a post-COVID recovery phase, economies are experiencing additional shocks, first and foremost from the war in Ukraine and associated geopolitical repercussions, but also from new outbreaks of COVID-19 and lockdowns in major industrial centres.
The WEF Centre for the New Economy and Society publishes economic outlooks on a quarterly basis. Quoting from the document itself, "this quarterly briefing builds on the latest policy developments and research as well as consultations and surveys with leading Chief Economists from both the public and private sectors..." and "it aims to summarize the emerging contours of the current economic environment and identify priorities for further action by policymakers and business leaders in response to the compounding shocks to the global economy from the COVID-19 pandemic and geopolitical events."
In short, here are the six expectations provided in the report:
Continued higher inflation and lower wages - globally
Food insecurity (specifically in developing economies)
Increased localization, diversification, and politicization of the supply chain
Greater rollback of globalization in goods, labor and technology than services
Dampened economic outlook for Russia, resulting from sanctions
Continued dominance of the US dollar as a global reserve currency (at least for now)
The report provides additional context behind each of the six areas mentioned above. It can be downloaded from the WEF here.
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