Global growth to weaken, India stands out with strongest growth prospect: WEF survey

Chief economists across the world expect global economic growth to weaken over the next year, but India stands out as a geography with the strongest growth expectations, a new World Economic Forum (WEF) survey showed on Thursday.

In its latest Chief Economists' Outlook, the WEF said nearly nine in ten chief economists surveyed expect global growth to weaken over the coming year, though only 13% think there could be a global recession. According to the survey, 94% expected global inflation to rise due to the closure of the Strait of Hormuz driving up energy and food costs and disrupting supply chains. The survey showed a reversal of the cautious optimism seen at the start of the year, as conflict in West Asia and the closure of the Strait of Hormuz fuel concerns over a major global economic shock. Chief economists ranked the current closure duration of the Strait of Hormuz as significantly more disruptive than last year's tariff turmoil. "Only months ago, the Chief Economists community was cautiously optimistic. The conflict in the Middle East changed that, and the economic scarring from the situation thus far is already expected to last into the months ahead," WEF Managing Director Saadia Zahidi said.