India is the strongest growth story with the most optimistic outlook, a WEF survey of chief economists noted. Over 52% expect strong growth, backed by domestic demand, while global growth is expected to weaken amid rising inflation.
India's Resilient Growth Story
India emerged as the strongest growth story in the survey, with 52 per cent of chief economists expecting strong or very strong growth over the next 12 months, making it the geography with the most optimistic growth outlook. "India stands out as the most upbeat growth story in the survey," the report noted. "Slightly more than half of the chief economists, or 52%, expect strong or very strong growth there over the next 12 months."
The report said India, along with the United States, is expected to remain relatively resilient despite global uncertainty, supported by robust domestic demand, infrastructure spending, investment momentum, trade agreements and policy support measures.
The report highlighted widening regional divergence in growth prospects. While Europe faces mounting stagflation risks and the Middle East and North Africa region is expected to witness the sharpest deterioration in growth, India and parts of South-East Asia are seen as comparatively resilient.
However, the WEF also flagged inflationary pressures for India, with 61 per cent of respondents projecting high or very high inflation in the country over the coming year as rising energy costs weigh on the economy.
Gloomy Global Outlook
Globally, the report said that 89 per cent of surveyed chief economists expect global growth to weaken over the next 12 months as the conflict in the Middle East and the closure of the Strait of Hormuz disrupt energy, food and fertilizer flows, raising inflationary pressures and increasing supply chain risks.
"The global economic outlook has darkened, according to the latest Chief Economists' Outlook," the WEF said in the report, adding that the closure of the Strait of Hormuz has "disrupted vital energy, food and fertilizer flows, threatening access and growth."
According to the survey, 94 per cent of chief economists expect global inflation to rise over the coming year due to higher energy and food prices caused by the disruption.
However, despite the worsening outlook, only 13 per cent of respondents believe a global recession is likely within the next year.
The WEF said the broader message from chief economists is that the global economy is entering a period of heightened volatility driven by geopolitical conflict, supply-chain stress, energy insecurity and uneven technological transformation. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)