Inflation is expected to recede later in the year, financial heavyweights said on Wednesday, as they warned that global economic growth may be slow through 2023.

During a panel discussion at the Asian Financial Forum, chairman of the Agricultural Bank of China Gu Shu said that while the world economy is facing multiple challenges ahead, it is in much better shape now.

"Downward pressure remains, but we believe inflation in major economies will start to come down. Growth rate may not be fast, but still in positive territory," he said.

"China will strive to accelerate economic recovery in 2023, and will begin to achieve faster growth in the second quarter."

Mark Tucker, the group chairman of HSBC Holdings, said he was optimistic about the outlook for later in the year, while calling for caution.

"I expect inflation to slowly come under control. The markets are certainly hoping that rates peak in the first half of the year, so that any recession is shallow, regionally limited and resolved quickly," Tucker said.

"But I think we need to be careful here with false dawns. And history shows that where inflation has come down, we may need to see a deeper recession caused by higher rates, or indeed recession fears may just dominate, and there's a risk that rates peak too low or too early, and therefore, inflation will persist for longer."

Jose Viñals, the group chairman of Standard Chartered, said financial institutions have to be the source of strength and stability.

"The role of the banking sector, the financial sector is critical in financing growth and sustainable development. This is particularly important at a time when the fiscal constraints on the public sector are very significant worldwide," he said.

Financial Secretary Paul Chan, meanwhile, said Hong Kong's current economic outlook is definitely better than last year, despite a challenging overall external environment.

"We expect the mainland's economic recovery would be pretty strong, particularly in the second half of the year. And this will provide strong support to Hong Kong and also cushion some of the external headwinds," he told reporters.

Chan added that the resumption of quarantine-free travel with the mainland will help the city's retail, catering and export sectors.