The global business expects 2023 to be economically challenging due to geopolitical challenges, high inflation and energy crisis, according to the global economic survey published by Eurochambres on Wednesday. The report is based on the responses of representatives from trade and commerce organizations that account for around 70% of world GDP. It shows that prolonged geopolitical tensions and instability are expected to continue mounting pressure on the global economy in 2023.

While U.S. and UK participants see rising inflation caused by soaring food and energy prices as the top challenges, the ones from EU are particularly concerned about energy security.

The participants gave their growth expectations for their countries or regions for 2023. U.S. and Chinese participants gave similar numbers to that of IMF, while British Chambers of Commerce said it expected a 1.3% contraction in the economy, a significantly more pessimistic figure than IMF’s 0.3% growth forecast.

In the Eurozone, the forecasts are largely in line with the IMF. However, there are significant differences between countries. The Spanish Chamber of Commerce and the Italian Union of Chambers of Commerce are optimistic for their countries’ growth compared to the IMF forecasts, while the German Chamber of Commerce and Industry DIHK predicts a greater slowdown for Germany’s growth than the IMF.

However, the DIHK’s forecast of a 3% GDP contraction in 2023 was made in the autumn and the economic environment has improved since then, with even some economists saying Germany could avoid recession.

The 2023 global economic survey was conducted during November and December 2022.