The Banking Executive Magazine - October 2023

ISSUE 178 OCTOBER 2023 the BANKING EXECUTIVE 1 Editorial BEYOND THE FOG OF TODAY'S ECONOMY: CHARTING A COURSE FOR GROWTH As global economies navigate through a labyrinth of uncertainty, the prevailing geopolitical and economic trends cast long shadows over the prospects of growth. The current conflict in the Middle East is but a singular point in a constellation of challenges that darken the global economic skyline. The immediate future, while bleak, is not beyond redemption, provided that transformative actions are taken to convert today's destructive cycles into constructive ones. The core engines of the world's growth are faltering. Europe teeters precariously close to recession, China's once-unstoppable economic expansion shows signs of significant deceleration, and the United States stands as the uncertain torchbearer of global growth. With the direction of the U.S. economy subject to a myriad of predictions—ranging from various landing scenarios to a potential nosedive—the narrative of stability is replaced by one of volatility. This uncertainty is not a mere specter of potential outcomes; it is a palpable force, driven by tangible factors. We are witness to an alarming spike in global borrowing costs, a harbinger of potential recessions and market turbulence. Furthermore, traditional economic and policy anchors that once provided stability to the global economy and financial markets seem to be vanishing, leaving us adrift in uncharted waters. Our long-term crises—climate change and widening economic inequality— remain unaddressed, with the specter of rising costs and future complexity looming large. The world is embroiled in a "permacrisis," marred by inconsistent growth, policy missteps, and a deficit in global coordination. Yet, within this complex tapestry of challenges lies the thread of opportunity. We possess the capacity to forge a path through this economic impasse. The requisite pivot demands visionary leadership that transcends national interests and a collective awakening to our interconnected plights. Absent this, we risk bequeathing to our progeny an era marked by financial instability, political discord, and geopolitical strife. The call to action is clear: we must elevate our collective vision to ensure the legacy we leave is one of stability and prosperity. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers DOC 1.qxp_Layout 1 11/15/23 1:39 PM Page 1