LONDON: Global Economy Poised for Improvements, but Challenges Loom
In a statement released on Wednesday, the World Economic Forum (WEF) indicated that the global economy is on track to see improvements or maintain stability in the coming year. However, the organization also cautioned against potential risks arising from geopolitical tensions and domestic issues.
Saadia Zahidi, managing director of the WEF, commented on the findings of the latest Chief Economists Outlook, emphasizing the delicate balance that leaders must navigate in the current economic landscape.
The report revealed a shift in sentiment among economists, with a notable increase in optimism compared to previous surveys. Despite this positive trend, 97 percent of respondents expressed concerns about the impact of geopolitics on global economic stability, while 83 percent highlighted domestic politics as a potential source of volatility in 2024.
Projections for the US and Asian economies were optimistic, buoyed by factors such as declining inflation rates and strong market performance. The Middle East and North Africa region also showed signs of moderate growth, albeit amid ongoing political unrest, particularly in relation to the Gaza conflict.
Despite the challenges ahead, the WEF identified key drivers of global growth, including technological advancements, artificial intelligence, and transitions towards sustainable energy practices. These factors, combined with accommodating fiscal and monetary policies, are expected to contribute to economic expansion in the near future.
While acknowledging the complexities faced by businesses and policymakers, the WEF remained hopeful about the long-term prospects for the global economy. The organization underscored the importance of seizing policy opportunities to stimulate growth across different economies, regardless of income levels.