Money20/20 USA 2023 saw the leading lights of financial services come together in Las Vegas to connect and offer key insights into the future of fintech.
We spoke to Convera’s EVP & Chief Commerical Officer Jennifer Parker, and Head of Market Insights Steven Dooley, about the concerns global businesses face with forex (FX) volatility continuing into the first half of 2024.
Convera: The impact of FX volatility on businesses
Parker says: “We surveyed businesses that trade globally and we found continued concern about high interest rates, inflation levels, geopolitical concerns and credit conditions. So macroeconomic uncertainty is still what's top of mind for them right now.
“FX volatility can really impact a business's bottom line. It definitely impacts their cash flow. So business executives need to remain focused on this as they continue to look forward in 2024. Combine this with the aforementioned global issues, and it’s clear that the macro-economic environment remains a challenging one.”
While the early part of 2024 may look similar to the macroeconomic environment last year, Dooley expects economic growth to slow down this year after a stronger-than-expected 2023, with the threat of recession still looming.
He says: “If you think back to the start of 2023, markets were worried that higher interest rates would cause a recession. We didn't see a recession in 2023, but we are concerned that we might see one in 2024.
“That's why our forecast is for global growth to be about 1.95% for the year. Now, outside of crisis periods such as the COVID-19 pandemic, we haven’t seen sub-2% growth globally ever before. So that's why we're concerned that we will see a slowdown in 2024.”
For more from Parker and Dooley, you can click on the video link above. And if you want to see more Convera insights for 2024, you can follow the link to their global outlook report for 2024 here.
Want to see more from Money20/20 USA 2023? Visit our YouTube playlist featuring interviews with some of the biggest players in fintech.