Two-thirds of chief economists surveyed by the World Economic Forum (WEF) at Davos expect a global recession in 2023, citing high inflation, low growth, high debt and high fragmentation environment.

The majority of economists, drawn from international agencies including the International Monetary Fund, investment banks and multinationals, considered a global recession “extremely likely,” while one-third of respondents to the survey deemed it as unlikely this year.

“The current high inflation, low growth, high debt and high fragmentation environment reduces incentives for the investments needed to get back to growth and raise living standards for the world’s most vulnerable,” WEF Managing Director Saadia Zahidi said.

It is worth mentioning that last week the World Bank slashed its global growth forecast for this year from 2.9% to 1.7%, while warned that high inflation, interest rates and Ukraine war could result in a second recession within three years in 2023. As for inflation outlook, the survey stressed that inflation would remain elevated this year, ranging from 5% for China to 57% in Europe, as the rise in energy prices continue to have a ripple effect on the global economy.