Middle-income economies to drive global growth

Middle-income economies are set to power the next phase of global expansion, even as the world economy confronts a new wave of structural challenges, according to the latest report by the World Economic Forum (WEF).

In its report, Growth in the New Economy: Towards a Blueprint, the WEF outlines a shifting global landscape shaped by rapid artificial intelligence adoption, rising geopolitical tensions, mounting public and private debt, and increasing environmental and demographic pressures. These forces, it notes, are weakening traditional growth models and demanding new policy approaches. Energy costs and political instability currently remain key constraints across regions. However, sectors such as IT services, advanced manufacturing, healthcare, and leisure are expected to emerge as major engines of growth in the years ahead.

The report identifies four core policy areas where governments and businesses must adopt strategic approaches while navigating complex trade-offs: WEF noted that middle-income economies are projected to contribute nearly two-thirds of global GDP growth by 2030, with Asia expected to account for over half of global growth. In contrast, low-income economies are expected to contribute only marginally.