DUBAI: Global economic growth is expected to weaken over the next year, according to the World Economic Forum’s latest “Chief Economists’ Outlook” report.
Some 72 percent of surveyed chief economists predict weaker growth over the next year globally, citing shifts in trade, rising political uncertainty and rapid technological changes.
Advanced economies are expected to remain stagnant. In the US, more than half (52 percent) anticipate weak or very weak growth.
Still, 22 percent of chief economists expected moderate growth in April, but that number has now increased to 49 percent.
Europe’s outlook is improving, though cautiously. Some 60 percent of respondents expect moderate or strong growth over the coming year, up from 47 percent in April, while 40 percent expect weak growth.
However, emerging markets such as the Middle East and North Africa, South Asia and East Asia and the Pacific show a more optimistic outlook with one in three chief economists expecting strong or very strong growth in these regions.
MENA is leading the charge with the strongest growth outlook. Some 37 percent of chief economists predict strong or very strong growth, up from 22 percent in April.
The World Bank projects the regional economy to grow 2.7 percent in 2025, accelerating to 3.7 percent in 2026 and 4.1 percent in 2027.
Confidence in MENA’s growth is fueled by the region’s efforts to diversify its economies and its tech ambitions, reflected in artificial intelligence-focused partnerships with the US.
The report highlights Saudi Arabia’s Vision 2030 as a “flagship effort” for economic diversification, and Dubai’s drive to become a financial hub, demonstrating the UAE’s ability to foster a business-friendly environment.
Inflation expectations vary across regions. Chief economists (59 percent) anticipate high inflation in the US over the next year. In Europe, only 9 percent expect high inflation, with a substantial 88 percent expecting moderate or low inflation.
In MENA, 60 percent of respondents expect moderate inflation and 28 percent expect low inflation over the next year.
The report also warns that advanced and developing economies are on increasingly divergent growth paths, with 56 percent of chief economists expecting the gap to widen further over the next three years.
