A survey of chief economists projects the global economy to weaken and geo-economic fragmentation to accelerate in 2024. The World Economic Forum (WEF)’s ‘Chief Economist Outlook’ report released on Monday warned of greater economic uncertainty and said that global economic prospects remain weak. The global economy is plagued by tight financial conditions, geopolitical rifts, and rapid advances in Generative Artificial Intelligence (AI).
More than half (56 percent) of chief economists believe the global economy will weaken this year, while 43 percent expect it to remain the same or strengthen. However, the outlook for South Asia and East Asia and the Pacific remains positive. Most economists there are expecting at least moderate growth in 2024. China emerged as an exception where 69 percent of economists expect moderate growth. This is due to weak consumption, low industrial production and property market concerns impacting the prospects for a strong turnaround.
WEF Managing Director Saadia Zahidi said the ‘Chief Economist Outlook’ report underlines the uncertain nature of the current economic environment. The resilience of the global economy will continue to be tested in the coming year amid rising divergence.