Over the past year, people’s hopes for their financial future have suffered a “massive collapse” around the world, according to the latest annual survey from global telecom company Edelman.
Edelman’s 2023 Confidence Barometer found that half of the countries surveyed had a double-digit year-on-year decrease in belief that their families would live better in five years.
In a sign of global pessimism about the world situation, the report found:
Furthermore, no developed country has more than 36% of its citizens confident that their families will have a better life in five years, and 24 of the 28 countries surveyed, including the United States (36%), the United Kingdom ) optimism plunged to a record low. (23%), Germany (15%), Japan (9%).
The report also reveals that business is the only global institution considered competent and ethical.
Business now leads the government by an “amazing” 53 points in capability and 30 points ahead in ethics, reports Edelman.
“Trust is the ultimate currency,” argues Edelman, and founder Richard Edelman argues that companies must continue to lead on social issues.
But as writer Adam Lowenstein points out here, critics question whether the company is following its own advice on the importance of trust.
Adam points out:
The company’s clients range from ExxonMobil to the Saudi government to members of the Sackler family, former owners of opioid manufacturer Purdue Pharma.
Good morning from Davos, where world leaders, business chiefs and policy makers meet for the World Economic Forum.
Fears of global recessions, cost of living crises, threats of natural disasters, extreme weather and war in Ukraine are all looming over the WEF.
Two-thirds of chief economists surveyed by the WEF believe a global recession is likely in 2023, with nearly one in five saying it is very likely .
While more than half expect European inflation to be high this year, they were unanimous in their view that European growth will slow in 2023. More than 90% of his chief economists predicted weak US economic growth.
Business leaders are also worried, with 73% of CEOs worldwide believing global economic growth will slow over the next 12 months.It’s the most pessimistic outlook since consulting PwC I started asking questions 12 years ago.
bob Moritzglobal chairman of PwC, said last night that many CEOs are not managing well in an era of high interest rates, where inflation, macroeconomic instability and geopolitical conflict are all major concerns for their bosses.
A volatile economy, decades of high inflation, and geopolitical conflict have pushed CEO pessimism to levels not seen in more than a decade.
Fortunately, however, CEOs are still trying to retain staff to address labor and skill shortages.
The theme of this year’s Annual Meeting is Cooperation in a Fragmented World, in recognition of the massive changes since the WEF’s last meeting in January 2020 (the 2022 meeting was held in May). am.
President of the European Commission, Ursula von der Leyen, will address the Davos meeting this morning at 11:15 am local time and may touch on European concerns about the US’s inflation-cutting legislation. Europe is concerned that the IRA, a comprehensive tax, health and climate bill, could violate trade rules, for example by providing tax credits for electric vehicles manufactured in North America.
After von der Leyen, China’s Vice Premier Liu He will appear at the forum for the first time since 2018.
US Treasury Secretary Janet Yellen is scheduled to meet with Liu He in Switzerland tomorrow to discuss economic ties between the two countries. This shows that Washington and Beijing are keen to improve relations.
8:30am Davos / 7:30am UK: Panel on Philanthropy: A catalyst for protecting the planet John F. KellyUnited States Special Envoy for Climate. Mark CarneyUnited Nations Special Envoy on Climate Action and Finance
8:30am Davos / 7:30am GMT: Includes Mastering New Energy Economics session Fatih BirolDirector-General of the International Energy Agency
11:15am Davos / 10:15am GMT: Special Address by Ursula von der LeyenPresident of the European Commission
11:45am Davos / 10:45am GMT: Special Address by Liu HwaVice Premier of China
1.15pm Davos / 12.15pm GMT: Media Briefing: 2023 Description: Chief Economist’s briefing on the state of the global economy. Jill MoeckChief Economist, AXA. Raghuram RajanCatherine Dussac Miller, University of Chicago Booth School of Business, Distinguished Service Professor of Finance, Among them RichardsonSenior Vice President and Chief Economist, Automated Data Processing
5:30 PM Davos / 4:30 PM GMT: Conversation with Henry Kissinger: A Historical Perspective of Warfare
6:45pm Davos / 5:45pm UK: press conference with Mikhail FedorovDeputy Prime Minister of Ukraine