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.
