Moscow: A vast majority of chief economists at the World Economic Forum (WEF) expect runaway prices to continue causing pain in Europe and the United States throughout 2023 despite reductions in headline rates of inflation in the early months of the year, a WEF report out Tuesday showed.
“Headline rates have begun to ease, but core inflation is stickier than anticipated and shows signs of picking up. The pressure on many households remains acute, and more than three-quarters of respondents expect the cost of living to stay at crisis levels in numerous countries throughout 2023,” it read.
The 29-page May 2023 Chief Economists Outlook shows that 90% of experts forecast high inflation in Europe and 68% in the US. A further 75% predict weak economic growth in Europe, while for the US views are divergent as the country’s growth prospects are clouded by heightened uncertainty around financial stability and the pace and extent of monetary tightening.
For China, chief economists are near unanimous in forecasting a significant rebound this year, and the country’s reopening is expected to bolster activity across the continent. Only 14% of experts said they expected China to see high inflation this year.
