Early Times Report
NEW DELHI, May 28: Chief economists across the world expect the global economic growth to weaken over the next one year, but India stands out as a geography with the strongest growth expectations, a new WEF survey showed on Thursday. In its latest Chief Economists' Outlook, the World Economic Forum (WEF) said nearly nine in ten chief economists surveyed expect global growth to weaken over the coming year, though only 13 per cent think there could be a global recession. According to the survey, 94 per cent 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 the Middle East 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. If the closure persists in the second half of the year, they expect its impact could approach the severity of the COVID-19 crisis, compounding effects across global supply chains, energy and food costs. |
