2023 Financial Predictions, World Economic Forum Recap: The Latest Finance News Trends
A look at the finance industry news from PR Newswire in January and February that you might have missed.
(Note: This is an edited version of a blog post originally published on prnewswire.com. Read the original for more.)
Over the course of January and February, PR Newswire distributed 7,590 finance-related press releases. Our team monitored the headlines and noticed a few recurring storylines.
Everyone loves a year-end list, but as the year kicked off, many companies were also sharing their predictions for 2023 and how inflation and a possible recession were shaping their decisions. January also saw corporate and government leaders return to Davos, Switzerland, for the World Economic Forum. Rising inflation around the world was one of the main topics – part of a “polycrisis” that attendees addressed. We also spotted several announcements from the buy now, pay later sector, which experienced a growth spurt over the holidays.
Below, we take a closer look at those trends as well as some of the most-viewed finance releases so far this year.
These were some of the most-read finance releases of the two-month period:
- Updates from FTX continued to be among the most popular finance releases. In mid-January, the company shared the latest updates since its chapter 11 filing, including the identification of approximately $5.5 billion of liquid assets.
- Las Vegas Sands announced that it will be developing a multi-billion-dollar flagship hospitality, entertainment, and casino project on Long Island, New York.
- In early February, BMO completed its acquisition of Bank of the West, adding 1.8 million customers and 500 branches to the company’s portfolio.
Finance News Trends
Below, we dig into some of the recurring finance news trends from the first two months of 2023.
The beginning of the year was full of 2023 financial predictions. Whether it was consumers’ spending plans for the new year, the expected effects of inflation and a potential recession, or how CEOs are feeling about the state of their businesses, companies’ releases varied widely.
During January and February, PR Newswire distributed dozens of releases that mentioned “predictions.” Here are a few of them:
- In early January, a new analysis from Bank of America found that “a reduction in cost-of-living pressures and some easing in the labor market” will evolve consumer spending in 2023.
- PwC’s Global CEO Survey revealed that 73% of CEOs believe global economic growth will decline over the next 12 months.
- On the other hand, consumers living paycheck to paycheck reported feeling optimistic about their finances in 2023, according to LendingClub data.
What do you think? Will these predictions prove true?
World Economic Forum Recap
The 53rd World Economic Forum convened in Davos, Switzerland, and brought together leaders in government and business from around the world. This year’s focus was “cooperation in a fragmented world.”
Over several days in January, leaders gathered to address solutions to the “polycrisis,” which consists of the ongoing pandemic, the war in Ukraine, rising inflation, and food insecurity. Among the takeaways, leaders seem cautiously optimistic about the economy. The International Monetary Fund’s managing director, Kristalina Georgieva, told the AP that the economy is “less bad than we feared a couple of months ago.”
Over the two-month period, PR Newswire distributed nearly 100 releases mentioning the forum in the U.S. and Canada. Here are just a few of the releases that caught readers’ and journalists’ eyes.
- Digital payments: The Universal Digital Payments Network launched in Davos has “the potential to drive down the cost of digital payments and accelerate adoption by banks and businesses of all sizes.”
- ESG data: The Valuable 500, a coalition of CEOs and their companies innovating for disability inclusion, released a white paper calling for the inclusion of disability data in corporate ESG reports.
- Digital economies: Another report released in Davos came from the Digital Cooperation Organization. The Bridging the Gap Report takes an in-depth look at the challenges facing nations, especially smaller and developing nations, to gain equal access to digital economies.
- DEI targets: An updated framework for the Hispanic Promise debuted at the forum. It aims to help companies effectively engage and invest in Hispanic employees, consumers, suppliers, and the community.
- Race for talent: ManpowerGroup published its 2023 trends report, “The New Human Age,” ahead of the World Economic Forum. The report found that 75% of companies reported talent shortages and companies are eliminating degree requirements and looking to older workers to fill positions.
Buy Now, Pay Later Services
In our previous trend roundup, we mentioned the surge of buy-now-pay-later technology being used during the holiday shopping season. With rising inflation, the option to pay just a quarter of the bill (or less) at the register seemed like a no-brainer to consumers. The loan option promises to essentially change the way people shop and was one of the hottest trends of the holiday season.
But despite a projected CAGR of 21.7% from 2022-2029, the BNPL sector seems to be hitting a few speedbumps. “The industry is now facing an existential crisis, as profits remain elusive, valuations plummet, competition increases and regulators ask tough questions about the lending practices behind B.N.P.L.,” the New York Times reports.
Over the first two months of 2023, PR Newswire distributed nearly 60 releases related to the BNPL sector, a slight decrease from the previous two-month period. Here are a few examples:
- Bluedot released its 2023 retail predictions, which included one for BNPL. “To attract younger customers, especially Gen Z, we’ll see retailers put more emphasis on BNPL both online and in-store to help ease consumer cost restraints,” the company said.
- Credit monitoring tool ScoreSense released its holiday spending report, which found that respondents aged 25-34 were more likely to use credit cards or buy now, pay later financing for their holiday purchases.
- Ingenico and Splitit announced their partnership to deliver a global, one-touch, no-interest BNPL service at the point-of-sale terminal.
Inflation and fears of a possible recession continue to have an impact on how consumers are spending and saving and how companies are planning for the year ahead. The team will continue to watch these trends, as well as others in the coming months, like the SVB fallout, tax preparation, and the use of AI in financial technology.