The world economic forum attracts over 2,000 billionaires from around the world, as well as 170 of the most powerful business and political leaders. These are the people who run the top banks, the top ministers from the countries that drive global growth – this is the most powerful group of leaders ever gathered in one place.
During this current meeting of the World Economic Forum, the International Monetary Fund, or IMF, has called for a slow-down in the world economy for 2019 and 2020. More importantly, the IMF is saying that the slowdown is faster than we originally thought – a slowdown in taking place and gaining momentum.
These global leaders, many of them from the business community are now saying that they are sure there will be a slowdown. Clearly the IMF is at this resort called Davos, in the beautiful part of eastern Switzerland, speaking to and interviewing these business leaders from the US, Switzerland, Japan, China, Russia, Germany, the UK and France – they all agree – globally the growth outlook is changing fast.
The biggest downgrades in growth were from the advanced countries in which 2018 growth was 2.3 percent. The 2019 growth is expected to fall to 2.0 percent then to 1.7 percent in 2020.
The IMF blamed its pessimism on Europe and Japan where weaker growth seems to be more pronounced. One survey said that one-third of global executives see the future darker now than five years ago. We at Classiarius see the slowdown as taking hold now, and likely getting worse at the end of 2019.