The global economic outlook has darkened. In the latest WEF Chief Economists’ Outlook, 89% of surveyed chief economists expect global growth to weaken, while 94% expect inflation to rise.
The global economic outlook has deteriorated sharply in recent weeks, with economists warning that escalating conflict in the Middle East and prolonged disruption to the Strait of Hormuz could trigger a severe shock to global growth, trade and inflation.
According to the latest May edition of the World Economic Forum’s (WEF) Chief Economists’ Outlook released on Thursday, nearly nine out of 10 surveyed chief economists expect global growth to weaken over the next 12 months, reversing the cautious optimism that marked the start of the year.
The report found that 89% of respondents anticipate weaker global growth, while 94% expect inflation to rise as energy and food costs surge following the closure of the Strait of Hormuz, one of the world’s most critical shipping routes for oil, liquefied natural gas and fertilizer-related goods.
The WEF said the worsening outlook stems largely from the conflict in the Middle East, which has disrupted global supply chains and heightened volatility across financial markets.
