The World Economic Forum’s latest Chief Economists Outlook paints a picture of contrasting economic fortunes across regions in 2025, with India and the US projected to grow, while Europe is expected to face challenges.
The January 2025 edition of the report highlights growth.
However, the report highlighted two bright spots amid the gloomy global economic outlook in the US and South Asia.
“South Asia continues to stand out, with 61% of chief economists expecting strong or very strong growth in 2025,” the report said.
The exceptional functionality of the region is largely assigned to India, which “remains the wonderful economy to the fastest expansion in the world. “
However, the report notes that potential potential demanding situations for India, noting that “there are now symptoms of a certain momentum being lost. “Recent knowledge in national narratives implies moderation of expansion, this turns out to be a transient adjustment rather than a basic weakness of the economy.
In contrast, hitting with India’s falsified prospects, Europe faces a difficult era to come. T
The report reveals that “the outlook for Europe remains gloomy, with 74% of respondents predicting weak or very weak growth this year.” This dramatic divergence between regions highlights the shifting dynamics of global economic power and the increasing importance of emerging economies in driving global growth.
Individual European economies show weakness titles, Germany contracting at 0. 3%, Italy expanding at 0. 4%, France 1. 2% and Spain managing the 3. 4% expansion.
The severity of the stage in Europe stressed through Mario Draghi, the former Italian prime minister and governor of the European Central Bank, who warned that “an annual investment equivalent to 5% of GDP would be required to revive economic dynamism. ” United States to play a key role
The United States presents some other attractive size for this global economic narrative. According to the report, “the main economists expect US politics to have a significant effect on the global economy in the coming years. “
“A majority (61%) characterizes this has an effect in a long -term replacement instead of a short -term interruption,” said the Wef report.
Under the incoming administration, economists anticipate “significant changes across trade, migration, deregulation, fiscal policy, industrial policy and foreign policy.” These changes are expected to have far-reaching implications, including potential “increases in inflation and public debt levels, as well as stock-market gains.”
China’s clients are also still worrisome, the expansion “planned to reduce slowly in the coming years. ” This deceleration at the time the global economy adds complexity layer to the global economic landscape.
The context remains complex and difficult, as the report states.
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