Team Blitz India
NEW DELHI: More than 56 per cent of chief economists expect the global economy to weaken in 2024, with most saying the pace of geo-economic fragmentation will accelerate, according to the latest Chief Economists Outlook released on January 15 at the World Economic Forum.
The report indicates that the global economic prospects remain subdued and uncertain. Challenges include tight financial conditions, geopolitical rifts, and the rapid development of generative artificial intelligence (AI).
Forty-three per cent of chief economists predict unchanged or improved conditions, while a significant majority expect labour markets (77 per cent) and financial conditions (70 per cent) to relax in the coming year. Despite regional variations in growth forecasts, no region is expected to experience very strong growth in 2024, although there has been a reduction in high inflation expectations across all regions.
“Amid accelerating divergence, 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,” said Saadia Zahidi, Managing Director, World Economic Forum.
