Where is the global economy heading? Chief economists weigh in

Six out of ten chief economists surveyed by the World Economic Forum expect the global economy to weaken in the coming year, according to the latest Chief Economists Outlook. The outlook is weakest in Europe, where about three-quarters of economists surveyed expect weak growth. In China, only 54% now expect moderate or strong growth in 2023, down from 97% in May's Chief Economists Outlook.

Tight financial conditions are weighing on businesses and households around the world. Political factors are another source of uncertainty, with 9 out of 10 chief economists believing that geopolitical factors will create economic volatility in the year ahead. Seven out of ten say the same about domestic political factors.

There is some optimism when it comes to the outlook for inflation. Eighty-six percent of chief economists say the worst of the global inflationary surge will have passed a year from now, and 93% believe the pace of interest rate rises will slow in inflation-prone countries.

However, there is pessimism around prospects for global development. Fifty-nine percent of chief economists say the economic outlook will undermine progress towards global development goals in the next three years, and 74% say geopolitical tensions will have the same effect.

However, finding ways to mobilize finance could turn this around. Ninety-seven percent of chief economists say private capital can drive progress in digital transformation projects, while 76% say it can do the same for energy access and affordability.