Political and business leaders around the world will convene in Davos, Switzerland today for the start of the 2023 Annual
Political and business leaders around the world will convene in Davos, Switzerland today for the start of the 2023 Annual Meeting of the World Economic Forum.
Under the theme of “Cooperation in a Fragmented World,” attendees will discuss the future of the global economy with respect to several intersecting issues, including a COVID-19-induced global recession, the war in Ukraine, climate change and high national debt levels.
Delegates will also address inflation. According to 1,200 respondents to the Forum’s Global Risk Report, a cost-of-living crisis is the biggest short-term risk facing the world right now. Global inflation peaked in Q3 of last year at 9.8% year-on-year and presently sits at about 9.5%. While many forecast that the rate will drop in 2023 to about 5.5%, geopolitical changes could disrupt that outcome, including developments in the war in Ukraine and a further deterioration of relations between China and the West.
Moreover, as in previous years, expect protests at and of this year’s meeting. The event has long received criticism for its disconnect with individual economic needs. While inflation is a popular consumer issue, anticipate opponents advocating their alternative to Davos’s economic model of global cooperation—anti-globalization reform. This competing vision will especially appeal to nationalist political movements.