3 Hopes And Concerns For The Global Economy, From The World’s Chief Economists

Interest rates are beginning to decline, which could relieve some pressure on the global economy. This shift is expected to stimulate economic activity, support labor markets, and boost job creation.

Many chief economists polled by the World Economic Forum are optimistic about 2025. In the United States, nearly nine in ten chief economists anticipate moderate or strong growth in the coming year. Similarly, in South Asia, 71% predict strong or very strong growth.

However, the optimism remains cautious. The global economic situation is still highly volatile, marked by significant uncertainty and difficulties, many of which have persisted since before the COVID-19 pandemic. While there are encouraging signs, the challenges are far from over, necessitating a careful approach moving forward.

Chief economists have consistently warned about the sluggish outlook for global growth. Recently, however, the focus has shifted from the quantity of growth needed to the quality and character of that growth. In light of challenges such as climate change and the need for resilience in the face of future crises, there is a growing consensus on the necessity of rethinking economic growth models.

Two-thirds of chief economists agree that progress on sustainability, economic equality, and social cohesion is crucial, even if it results in slower growth. Despite this agreement, only 12% believe that current efforts in these areas are effective. The latest edition of the Chief Economists Outlook emphasizes the importance of a broader economic policy that includes not only GDP growth but also other goals such as equality, sustainability, and resilience. Balancing these priorities presents a significant challenge for policymakers.

The Chief Economists Outlook, a quarterly report from the World Economic Forum, gathers insights from top economists in both the public and private sectors, offering a comprehensive overview of the current economic landscape and the challenges facing decision-makers. One of its key objectives is to translate complex global economic trends into concrete terms for a broad audience, making these issues more accessible and understandable.