New Delhi: The India economy is expected to outperform in the current and next calendar year, driving growth in the South Asian region, according to a poll of economists shared by the World Economic Forum (WEF). Nearly 70 per cent of economists predicted strong or very strong growth for the region in 2024 and 2025.
The observation showcased India’s strong economic activity with the International Monetary Fund upgrading the country’s growth outlook to 7 per cent from 6.8 per cent earlier, according to the WEF’s Chief Economists Outlook.
WEF economists’ poll on global economy
According to the poll, 10 chief economists stressed on elevated debt levels as well as challenges faced by the global economy on the fiscal front. This is adding pressure on the global economy, elevating their vulnerability to future crises. Governments may be hurt by a narrow fiscal space where elevated costs of debt servicing may lead to a squeeze in government investment in key sectors ranging from infrastructure to education and healthcare.
How will developing economies perform?
Around 39 per cent of the economists surveyed expected a rise in debt defaults over the coming year, according to the WEF. The US economy is expected to register strong to moderate growth in 2024 and 2025, according to 90 per cent of economists surveyed indicating confidence in the US economy’s ‘soft landing’ following over 2 years of monetary tightening.
The US election outcome is expected to have a significant on the global economic policy, according to 80 per cent of economists surveyed. The Chinese economy is expected to register weak or very weak growth in 2024 and 2025, according to 40 per cent of economists surveyed. “South Asia is a clear stand-out performer, with seven out of 10 chief economists expecting strong or very strong growth in 2024 and 2025,” according to the World Economic Forum’s Chief Economists Outlook report.
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