The World Economic Forum: What to Expect in 2023
The World Economic Forum is once again holding its annual meeting in Davos, Switzerland, from 16-20 January 2023. After being cancelled in both 2020 and 2021 due to the coronavirus pandemic, the event has returned in full force, with a European-heavy guest list led by German Chancellor Olaf Scholz and European Commission President Ursula von der Leyen.
The meeting comes as the S&P 500 is expected to report a year-over-year decline in earnings for the fourth quarter, signaling the first such decline since the third quarter of 2020. Furthermore, the index is expected to report earnings contraction on a year-over-year basis for Q1 and Q2 2023.
The meeting is also taking place in the midst of a worsening food crisis, with experts warning that more people will face hunger in 2023 than in prior years due to food prices continuing to rise, shortages becoming more frequent, and livelihoods being further decimated.
China's economy is also growing at its slowest rate since the mid-1970s, with Beijing reporting a 3% growth rate for 2022. This falls well short of the government's official target of 5.5%. Meanwhile, China's population has also fallen for the first time since 1961.
The markets are also being closely watched at the World Economic Forum's annual meeting, with investors looking for any signs of potential changes in the global economy. With so much uncertainty, the event will certainly be one to watch.
0. “Davos 2023: What you need to know about climate, nature and energy | World Economic Forum” World Economic Forum, 16 Jan. 2023, https://www.weforum.org/agenda/2023/01/climate-nature-energy-saving-the-planet
1. “Who’s not coming to Davos” POLITICO Europe, 16 Jan. 2023, https://www.politico.eu/article/davos-world-economic-forum-guest-list-politics-business
2. “Market Hot Streak, Breakout or Rejection? Davos Risk, China, Earnings Parade” RealMoney, 17 Jan. 2023, https://realmoney.thestreet.com/markets/market-hot-streak-breakout-or-rejection-davos-risk-china-earnings-parade-16113600
3. “Davos 2023: The 5 key talking points set to dominate the agenda at this year’s World Economic Forum” Euronews, 16 Jan. 2023, https://www.euronews.com/next/2023/01/16/davos-2023-the-5-key-talking-points-set-to-dominate-the-agenda-at-this-years-world-economi
4. “Brussels Playbook: Make or break in Europe — China’s Wang to visit — Sad CEOs” POLITICO Europe, 17 Jan. 2023, https://www.politico.eu/newsletter/brussels-playbook/make-or-break-in-europe-chinas-wang-to-visit-global-ceos-disrupted/