Economic Forecast is “Weakest in Decades”

Euromonitor, a London-based business intelligence consultancy, is out with an economic forecast for 2023 and it isn't pretty. 

The global economic outlook for 2023 is among the weakest in decades. The economic fallout from Russia's invasion of Ukraine will weigh heavily on growth as demand is dampened by persistent inflation and the increasing impact of rising borrowing costs for businesses and consumers. Plus, the sharply reduced growth projection for 2023 remains fragile, as the global economy faces multiple headwinds, including immediate risks emanating from the ongoing war in Ukraine, elevated geopolitical volatility and rising economic fragmentation.

Among the contributing factors:

• Global inflation is expected to remain higher for longer;

• Over-tightening monetary conditions could result in a global recession; 

• Supply-chain constraints linger and act as a drag on growth; and

• Extreme weather events, consequent to climate change, will create more economic damage.

Institutional leaders in the education sector should assess their vulnerability to these risks and develop scenario plans accordingly.