Despite market enthusiasm, the global economy is expected to get weaker amid uncertainty this year although South Asia, Central Asia, and East Asia and Pacific is expected to do better.
The main factors worsening the economic conditions are:
The above is the main crux of a recent study conducted by the World Economic Forum (WEF) ahead of its 54th annual meeting being held in Davos during 15- 19 January 2024.
Titled the ‘Chief Economists Outlook,’ the report drew its findings through consultations and a survey conducted with the WEF’s Chief Economists Community.
56% of the economists expect the global economy to weaken in 2024. However, regional variations vis-à-vis economic outlook vary.
69% of the economists expected geoeconomic fragmentation to accelerate this year.
Over the next three years:
The opinions of economists vary highly regarding the impact of generative AI across high-income and low-income economies.
Source: CNBC/Europe Markets
The U.S. market remained closed on Monday on the occasion of Martin Luther King Jr. Day.
Most of the surveyed economists were positive about labour markets and financial conditions relaxing this year, with inflating easing - but none expected a significant economic growth in any region.
“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,” said Saadia Zahidi, managing director, WEF.
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