Business leaders and political leaders from all over the world are gathering in Davos for the World Economic Forum (WEF Meet), meanwhile the World Economic Forum (WEF) released an estimate for the world’s economies. Which can draw lines of trouble on the forehead of the world.
WEF’s projections on the global economy
According to the latest estimates of WEF released on Monday, the world’s economies will weaken in the year 2024. It says that the world economy is struggling with tight financial conditions, geo-political conflicts and the rapid progress of Generative Artificial Intelligence (AI).
More than half of chief economists (56%) believe that the global economy is going to remain sluggish in the year 2024, while 43% feel that there will be no change, or conditions will remain strong. However, the outlook for Southern Asia and East Asia and the Pacific remains positive and a strong majority expect at least moderate growth in 2024.
China has emerged as an exception to these projections, where a small majority (69%) expect moderate growth, as weak consumption, falling industrial output and property market concerns weigh on the prospects for a strong rebound.
Regional development outlooks vary widely
A strong majority also say that the labor market (77%) and financial conditions (70%) will loosen in the coming year. However, the possibilities of high inflation have been reduced in all sectors.
Regional growth outlooks vary widely and no region is expected to have very strong growth in 2024.
WEF Managing Director Saadia Zahidi said that ‘the latest outlook of the Chief Economists points to the uncertainty of the current environment.’
Saadia said, ‘Although inflation is declining around the world, growth is slowing, financial conditions remain difficult, global tensions are deepening and inequalities are increasing, these things are necessary to maintain the pace of sustainable, inclusive economic growth. This shows the urgent need for global cooperation.
Geopolitical conflicts will increase
In Europe, the outlook has weakened significantly since the September 2023 survey, with the share of economists expecting weak or very weak growth almost doubling to 77%. The outlook is also weak in America and Middle East and North Africa (MENA). Where 6 out of 10 economists expect moderate (78%) or strong growth (79%) this year.
7 out of 10 chief economists expect the pace of geo-political conflicts to increase this year, the majority say that geo-politics will lead to instability in the global economy (87%) and stock markets (80%), localization ( 86%) will increase.
