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Global Economy Faces Downturn in 2025, WEF Survey Shows
Source: World Economic Forum

Global Economy Faces Downturn in 2025, WEF Survey Shows

WEF survey: 56% of chief economists predict weaker global growth, with US showing strength while Europe and China face headwinds.

Philip Lee profile image
by Philip Lee

Geneva, Switzerland—According to a World Economic Forum survey, Global chief economists expect weaker economic conditions in 2025. 

Fifty-six percent forecast deterioration and only 17 percent anticipate improvement.

The United States shows signs of short-term economic strength. 44% of economists predict robust growth in 2025, up significantly from 15% in August 2024.

Europe continues to struggle, with 74% of respondents expecting weak or very weak growth, marking its weakest regional outlook in nearly three years. 

China's outlook remains subdued, with growth projected to slow amid weak consumer demand and declining productivity.

Global inflation is moderating, with the International Monetary Fund projecting an average of 4.3% in 2025, down from 5.8% in 2024. 

Services inflation remains higher than goods inflation, particularly in advanced and emerging market economies.

The survey revealed that 94% of chief economists expect rising public debt levels in the United States, while 91% anticipate tax reductions. 

Nearly all respondents (94%) predict increased inflation under the new U.S. administration.

On trade, 94% of economists expect further fragmentation of goods trade over the next three years, while 59% forecast similar trends for services trade. 

More than three-quarters predict higher barriers to labor mobility.

The survey, conducted in late November 2024, shows that 82% of respondents expect trade to become more regional. 

However, 48% still anticipate increasing global trade volumes despite growing protectionist pressures.

Key regional findings show South Asia maintaining strong growth momentum, with 61% of economists expecting robust growth. 

ASEAN nations are projected to expand by 4.7% in 2025.

The report indicates that 76% of chief economists expect multinational companies to exit high-risk markets, while 91% anticipate supply chain restructuring in response to global economic fragmentation.

Philip Lee profile image
by Philip Lee

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