Surging cost of inflation makes Global Recession most likely: World Economic Forum

Tags: Economy/Finance

In a report released on 28 September 2022, the World Economic Forum (WEF) said that due to persistently high inflation and fall in real wages continuing to fall, a global recession is becoming increasingly likely.

According to the WEF Chief Economists Outlook report, real wages are expected to continue falling across the world in 2022-2023 and the cost of living crisis is threatening social unrest, though inflationary pressures are expected to ease in the next year.

The survey of over 50 economists from the finance, insurance, professional services and technology industries, as well as international organizations and regional development banks, found that they expect reduced growth, stubbornly high inflation and continuing fall in real wages for the remainder of 2022 and 2023.

An average of seven out of ten economists consider a global recession to be at least "somewhat likely".

World Economic Forum (WEF)

The World Economic Forum was founded by German engineer, economist Professor Klaus Schwab as the European Management Forum, in Geneva, Switzerland.

In 1987 its name was changed to World Economic Forum.

The WEF engages the top political, business leaders of the world to influence and set the global, regional and Industry agenda.

It organises an annual meeting at Davos, Switzerland where world political and business leaders gathers to discuss international issues 

It releases following reports;

• Global Gender Report;

• Chief Economist Outlook; 

• Global Risk Report;

• Environmental Performance Report;

• Global Competitive Index

Headquarters of WEF: Geneva, Switzerland