New World Economic Forum Report: The Economic Outlook Is Brightening

Wednesday 29 May 2024

New World Economic Forum Report: The Economic Outlook Is Brightening Syndicated by GEÓVoice PR Wire – Gibraltar 
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Chief Economists: The Economic Outlook Is Brightening But Political Risks Loom Large in 2024

82% of chief economists expect the global economy to remain stable or strengthen this year – almost twice as many as in late 2023

Over two-thirds predict a sustained rebound of global growth, driven by technological transformation, artificial intelligence and the green transition

There is near-unanimity that geopolitics and domestic politics will drive economic volatility this year

Read the May 2024 Chief Economist Outlook here

Geneva, Switzerland, 29 May 2024 – The latest Chief Economists Outlook released today presents a growing sense of cautious optimism about the global economy in 2024. More than eight in ten chief economists expect the global economy to either strengthen or remain stable this year – nearly double the proportion in the previous report. The share of those predicting a downturn in global conditions declined from 56% in January to 17%.

But geopolitical and domestic political tensions cloud the horizon. Some 97% of respondents anticipate that geopolitics will contribute to global economic volatility this year. A further 83% said domestic politics will be a source of volatility in 2024, a year when nearly half the world’s population is voting.

“The latest Chief Economists Outlook points to welcome but tentative signs of improvement in the global economic climate,” said Saadia Zahidi, Managing Director, World Economic Forum. “This underscores the increasingly complex landscape that leaders are navigating. There is an urgent need for policy-making that not only looks to revive the engines of the global economy but also seeks to put in place the foundations of more inclusive, sustainable and resilient growth.”

Long-term prospects and priorities

Most chief economists are upbeat about the prospects for a sustained rebound in global growth, with nearly 70% expecting a return to 4% growth in the next five years (42% within three years). In high-income countries, they expect growth to be driven by technological transformation, artificial intelligence, and the green and energy transition. However, opinions are divided on the impact of these factors in low-income economies. There is greater consensus on the factors that will be a drag on growth, with geopolitics, domestic politics, debt levels, climate change and social polarization expected to dampen growth in both high- and low-income economies. Learn More/...