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Chief Economists Foresee Weaker Global Growth and Widening Gaps

Photo by Markus Spiske / Unsplash

Geneva, Switzerland - A survey of leading chief economists predicts significant business headwinds in 2024.

More than half of respondents expect global growth to slow, and 70% expect financial conditions to tighten. 

According to the World Economic Forum's latest Chief Economist Survey, the outlook for the global economy continues to deteriorate, with 56% predicting weaker global growth, compared with 43% who see more stable activity. 

Except for South and East Asia Pacific, all regions face significant downside risks. 

Tighter financial conditions are cited by 70% of respondents, while subdued labor markets are cited by 77%. 

Geopolitics is fueling volatility bets, with 87% predicting increased equity market turbulence and 86% seeing increased localization. 

Diverging industrial initiatives could increase income inequality and strain fiscal positions, according to 66%. 

Still, AI productivity gains have a more significant impact in advanced economies, particularly on efficiency, cited by 79%, and innovation by 74%. 

However, the net impact on jobs is disproportionately negative, especially for low-income countries. 

Policy space is narrowing as the global economy faces uncertainty.