80% see promising economy in 2024 amid geopolitical risks: WEF survey

This positive shift in the survey, which presents a cautiously optimistic view of the global economy highlighting key geopolitical risks, is due to advancements in technology, artificial intelligence and the green energy transition.

However, 97 per cent of respondents foresee geopolitical tensions contributing to global economic volatility, and 83 per cent believe domestic political issues will also be a key source of instability this year, which will witness elections in several nations.

Geopolitics, domestic politics, debt levels, climate change and social polarisation are expected to be significant drags on growth.

Nearly all chief economists (97 per cent) predict moderate to strong growth in the United States, up significantly from 59 per cent in January. Economies in South Asia and East Asia are expected to maintain at least moderate growth. Three-fourths of respondents foresee moderate growth in China, with only 4 per cent anticipating strong growth.

The outlook remains pessimistic about Europe, with nearly 70 per cent of economists predicting weak growth for the rest of the year.

Moderate growth is generally expected in other regions, with some improvement noted since the last survey.

Important factors influencing business decisions include the overall health of the global economy, monetary policies, financial market conditions, labour market conditions and political factors.

Fibre2Fashion News Desk (DS)