A mood of mounting economic pessimism is taking hold across the world’s major economies, as soaring prices and geopolitical uncertainty damage the prospects of businesses and consumers.
In the past year consumer and business confidence has fallen by the most in a decade, with the exception of the initial months of the coronavirus pandemic, according to research for the FT.
Hard economic data and leading financial indicators are also falling from strong levels after Covid-19, signalling that momentum in the world economy is stalling, the latest twice-yearly Brookings-FT tracking index showed.
The collapse in confidence comes as global financial officials gather in Washington this week for the IMF’s and the World Bank’s annual meetings. The two bodies are expected to publish forecasts warning that the world economy is on the brink of recession.
Eswar Prasad, senior fellow at the Brookings Institution, said the index’s…
