Speaking on the sidelines of the World Economic Forum's annual summit in Davos, Carmine Di Sibio, Global Chairman & CEO of EY, told CNBC-TV18 that he is not seeing signs of a slowdown in global economy.
“The whole Russia-Ukraine situation has caused issues around food security and energy security and that is part of the conversation this year. There is also big conversation going on around China and how it is interplaying with what is going on in the world and this is a big concern of everyone here. However what counters all this is the economy in general," Di Sibio said.
He added that most attendees at Davos think that we are in for more of a downturn in the economy. "Maybe 35-40 percent believe that we will have a recession, some believe that maybe Europe will have a technical recession which will be short-lived. However if you combine all these things, it is driving the world into thinking that there is going to be a recession and that is something that we are concerned about," he said.
From an EY perspective, Di Sibio said "we are not seeing many signs of slowdown. We are still seeing many companies investing in technology, in transformation, investing in their people”.
He said isolation of Russia will impact energy prices and the world needs to find alternative sources of energy.
“The Russia-Ukraine war is not going to end in a few weeks, this will continue. And with that there will be more of an isolation attitude towards Russia. However that will also have an impact on energy prices around the world. So we are going to have to find alternative sources of energy and so forth. So countries will have to look at different ways to de-risk. So I think these are going to be real problems and they are some of the reasons behind inflation.”
Watch video for more.