Wahyu Dwi Anggoro
IDXChannel - Global economic prospects remain subdued and fraught with uncertainty, according to the latest Chief Economists Outlook released today.
The global economy continues to grapple with headwinds from tight financial conditions, geopolitical rifts and rapid advances in generative artificial intelligence (AI).
More than half of chief economists (56%) expect the global economy to weaken this year, while 43% foresee unchanged or stronger conditions.
A strong majority also believe labour markets (77%) and financial conditions (70%) will loosen over the coming year. Although the expectations for high inflation have been pared back in all regions, regional growth outlooks vary widely and no region is slated for very strong growth in 2024.
“The latest Chief Economists Outlook highlights the precarious nature of the current economic environment,” said Saadia Zahidi, World Economic Forum (WEF) Managing Director, in a media release on Monday (15/1/2024).
“Amid accelerating divergence, the resilience of the global economy will continue to be tested in the year ahead. Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening and inequalities are rising – highlighting the urgent need for global cooperation to build momentum for sustainable, inclusive economic growth," Zahidi added.
Regional variations
The outlook for South Asia and East Asia and Pacific remains positive and broadly unchanged compared to the last survey, with a strong majority (93% and 86% respectively) expecting at least moderate growth in 2024.
