WEF Report: Global Economic Growth Slowing, Debt Risks Mounting in Rich Nations

Ndubuisi Francis in Abuja 

The global economy is entering a period of subdued growth and heightened disruption, according to the latest Chief Economists’ Outlook released by the World Economic Forum (WEF).

The report revealed that 72 per cent of surveyed chief economists in the world expect global growth to weaken over the next year.

According to the report, intensifying trade disruption, rising policy uncertainty, and rapid technological advancement are principal forces shaping a new economic environment, adding that these developments point towards a landscape characterised by persistent disruption and increasing fragmentation.

The report highlighted a stark divergence in growth expectations across regions. Emerging markets, particularly those in the Middle East and North Africa (MENA), South Asia, and East Asia and the Pacific, are seen as key drivers of global growth, while advanced economies are projected to face stagnation.

One in three chief economists expect strong or very strong growth in these emerging regions. 

The outlook for China remains mixed, with 56 per cent foreseeing moderate growth amid persistent deflationary pressures. 

Advanced economies such as Europe and the United States are anticipated to experience weak growth and fiscal or inflationary challenges.

Debt vulnerabilities are becoming increasingly pronounced in advanced economies. 

The report noted that 80 per cent of surveyed chief economists expect debt risks to escalate in advanced economies over the coming year. 

Fiscal vulnerabilities are now cited as top growth inhibitors by 41 per cent of respondents for advanced economies, compared to just 12 per cent for developing economies. 

This shift indicates a growing concern surrounding the sustainability of public finances in wealthier nations, a risk that was previously more commonly associated with emerging markets.

Trade disruption has reached what chief economists describe as “very high” levels. Seventy per cent of respondents rate the current trade environment as highly disruptive, with over three-quarters expecting this instability to cascade into other parts of the global economy. These disruptions extend beyond trade to impact global value chains, financial markets, and broader economic institutions, leading to systemic uncertainty.