A poll conducted of chief economists found three-quarters expecting weak to very weak growth in Europe this year, the most pessimistic outlook of any region.
The chief economist survey, released in conjunction with the World Economic Forum in Davos but conducted in November and December, found a big geographic split, with 93% expecting moderate to strong growth in South Asia and 86% expecting that for East Asia.
For the U.S., 56% expected moderate to strong growth, down from 78% for a poll in September. By contrast, 77% expected weak to very weak growth in Europe, nearly double the number who did in September.
The bleak outlook comes as the Federal Statistical Office reported that Germany’s economy shrank by 0.3% in 2023, after rising by 1.8% in 2022. The statistics agency said high prices and unfavorable financing conditions weighed on Europe’s largest economy.
At the same time, only 13% expect high inflation in the U.S. and in Europe this year. China is the outlier in the other direction, with 76% expecting low or very low inflation.
The World Economic Forum polled economists at banks, consulting firms, international agencies as well as companies including Microsoft and Google.
