The World Economic Forum (WEF) is warning that leading economists are predicting global economic doom for the coming year.
According to a survey by the WEF, around 56% of top global economists predict that the world economy will weaken in the coming year.
The globalist organization, which was founded by German economist Klaus Schwab, says fueled by geopolitical risks and increased localization are fueling the predictions.
While regional growth expectations vary, none are expected to do particularly well in 2024, the WEF warns.
77% of respondents predicted “weak or very weak growth” in Europe, according to the WEF survey.
Around 60% expect “moderate or stronger growth” in the U.S., Middle East, and North Africa.
Roughly 70% of economists also expect a further separation of world economies, fueled by geopolitical risks, increased localization, and tightening economic blocs.
In the survey, WEF Managing Director Saadia Zahidi said:
“The latest Chief Economists Outlook highlights the precarious nature of the current economic environment.
“Amid accelerating divergence, the resilience of the global economy will continue to be tested in the year ahead.
“Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening and inequalities are rising.”
The economists surveyed did express hope for the future economy, with 77% saying that labor markets will loosen while 70% thought that financial conditions will ease, according to the WEF.
Top economists were especially optimistic about Asia, expecting the southern and eastern regions to have “moderate growth,” but were less optimistic about China, with 69% foreseeing “moderate growth.”
Oil prices *fell* during the 2008 financial crisis. What happens if a combination of inflationary deficit spending and geopolitical issues pushes the price of oil *higher* if and when the US enters into a recession the next time?https://t.co/ovBss7kUb0
— David Sommers (@dgsommersmkts) January 14, 2024
Around 94% of those surveyed expect generative artificial intelligence (AI) to have economically significant “productivity benefits” in high-income economies, according to the WEF.
53% of low-income economies will have the same “benefits” over the next five years, the organization adds.
Economists were also optimistic about inflation in 2024.
Inflation which has plagued the global economy over the past few years.
Only 13% expect high inflation in the U.S. and Europe, according to the WEF.
The global economy is facing a number of risks going into 2024, including the conflicts in Ukraine and the Levant.
The conflicts are threatening trade and oil supplies.
Iran-backed Houthi rebels from Yemen have launched a number of attacks on ships traveling through the Red Sea in response to the war between Israel and Hamas.
The attacks are disrupting global trade routes.