A new report from the World Economic Forum (WEF) reveals that the majority of chief economists worldwide expect weaker global economic conditions in 2025, with India likely to sustain strong growth despite signs of lost momentum.
Global Outlook: Weaker Growth Expected
The WEF’s Chief Economists Outlook, published on Thursday, shows that 56% of economists anticipate a slowdown in global economic conditions in 2025. Only 17% foresee improvement, signaling rising uncertainty and the need for careful policy responses across key regions.
In contrast, the US economy will likely show robust growth in 2025, and South Asia, particularly India, will likely maintain strong economic performance.
The report paints a bleak picture for Europe, with 74% of economists predicting weak or very weak growth in 2025.
Similarly, China’s economy will likely experience slower growth due to subdued consumer demand and lower productivity.
South Asia stands out in the global outlook, with 61% of economists expecting strong or very strong growth in 2025.
“This regional performance has driven largely by robust growth in India, which remains the world’s fastest-growing major economy. However, there are now signs of some momentum being lost,” the report stated.
India’s GDP growth for the third quarter of 2024 recorded at 5.4%, the slowest in nearly two years, prompting the central bank to revise its growth forecast downward.
On trade, nearly 48% of economists expect an increase in global trade volumes in 2025, reflecting the resilience of global commerce.
However, the report highlights intensifying trade tensions, particularly between major powers, with protectionism being a key factor driving lasting changes to global trade patterns.
Conflict, sanctions, and national security concerns are also contributing to these shifts.
The report predicts a greater regionalization of trade in the coming years, with 82% of economists anticipating this trend alongside a gradual shift from goods to services.
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