Top-level economists gathered at the annual meetings of the World Economic Forum (WEF) in Davos anticipate a weakening of the global economy in 2024 due to geopolitical tensions, tight financial conditions, and uncertainties.
The World Economic Forum’s “Chief Economist Outlook Report 2024” was unveiled during the WEF annual meeting in Davos.
According to the report, expectations for the global economy continue to remain “sluggish,” highlighting that the global economy is grappling with challenges arising from tight financial conditions following high inflation, geopolitical disputes, and difficulties associated with rapid advancements in artificial intelligence (AI).
While 56% of chief economists anticipate a weakening of the global economy this year, 43% foresee either unchanged conditions or stronger growth in the global economy.
The economic outlook remains positive for the United States, South Asia, East Asia, and the Pacific, while economists predict weak economic growth in Europe.
A notable 68% of economists expect weak growth in China this year, citing concerns about low consumption, low industrial production, and the real estate market, which could exert pressure on a more robust recovery.
Economists are optimistic about labor markets, with 77% expecting easing labor market conditions, and 70% foreseeing a relaxation of financial conditions in the coming year.
In terms of inflation, 70% of respondents predict a decrease in inflation rates this year, but expectations persist for tight financial conditions.
Regarding artificial intelligence, 94% of economists participating in the survey expect significant productivity gains in high-income economies within the next five years, while the figure drops to 53% for low-income economies.
Most economists in the survey conducted by the WEF anticipate that productive AI will substantially enhance innovation in high-income economies. The majority also expects that AI will play a significant role in boosting productivity in these economies.
As the global economic landscape faces various challenges and transformative technologies, the insights provided by chief economists at Davos shed light on the complex factors influencing the trajectory of the world economy in the coming year.
source: aa.com.tr/prepared by Melisa Beğiç