DAVOS: A survey of global chief economists by the World Economic Forum (WED) today predicted the global economy to see a year of downturn and uncertainty, facing headwinds from tough financial conditions, geopolitical tensions, and the rise of artificial intelligence.
According to the latest Chief Economists Outlook released today, more than half (56 percent) of the leading economists surveyed projected that the global economy would weaken in 2024, while 43 percent predicted the economy to maintain or gain momentum. A large majority also believes that labour markets (77 percent) and financial conditions (70 percent) will improve over the next year.
Although the expectations for high inflation have been pared back in all regions, regional growth outlooks vary widely and no region is slated for very strong growth in 2024.
‘The latest Chief Economists Outlook highlights the precarious nature of the current economic environment,’ said Saadia Zahidi, Managing Director, World Economic Forum. ‘Amid accelerating d
ivergence, the resilience of the global economy will continue to be tested in the year ahead. Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening and inequalities are rising – highlighting the urgent need for global cooperation to build momentum for sustainable, inclusive economic growth.’
The outlook for South Asia and East Asia and Pacific remains positive and broadly unchanged compared to the last survey, with a strong majority (93 percent and 86 percent respectively) expecting at least moderate growth in 2024. China is an exception, with a smaller majority (69 percent) expecting moderate growth as weak consumption, lower industrial production and property market concerns weigh on the prospects of a stronger rebound.
In Europe, the outlook has weakened significantly since the September 2023 survey, with the share of respondents expecting weak or very weak growth almost doubling to 77 percent. In the United States and the Middle East and
North Africa, the outlook is weaker too, with about six in 10 respondents foreseeing moderate or stronger growth this year (down from 78 percent and 79 percent respectively). There is a notable uptick in growth expectations for Latin America and the Caribbean, sub-Saharan Africa and Central Asia, although the views remain for broadly moderate growth.
Source: Emirates News Agency
