DID Press: A new survey by the World Economic Forum shows that leading global economists are increasingly pessimistic about the outlook for the world economy, warning of weaker growth and persistent inflation amid rising geopolitical tensions.
According to the report, 89% of surveyed economists expect global economic growth to slow in the coming months, while 94% believe inflation will remain elevated, continuing to pressure consumers and financial markets.
Experts attribute the downturn in outlook to escalating geopolitical conflicts, disruptions in global trade, and growing risks to critical energy transport routes, all of which are increasing costs and weakening growth prospects.
The report highlights the Strait of Hormuz as a key concern, noting that prolonged disruption in the passage could trigger a global economic shock comparable to major crises.
The strait carries roughly one-fifth of global oil shipments, and any blockage could sharply increase energy prices, transportation costs, food prices, and global inflation levels.
The survey also notes that major corporations and international investors are reassessing supply chains and trade routes due to rising uncertainty, leading to more cautious investment decisions and slower global trade flows.
Economists warn that if geopolitical tensions persist alongside high inflation, the global economy could enter a prolonged period of weak growth, rising costs, and financial instability with widespread impacts on livelihoods and development worldwide.