Global Economic Outlook

The World Economic Forum's latest report highlights a modest improvement in the global economic landscape, though uncertainty prevails due to various factors such as asset valuations, mounting debt, geo-economic shifts, and the rapid adoption of artificial intelligence (AI).

Key Findings

• 53% of chief economists foresee weakening global economic conditions, down from 72% in September 2025.
• South Asia, with India leading, is seen as the brightest growth region.
• India's economy reflects 8.2% year-on-year real GDP growth in the September quarter, despite facing trade headwinds.
• Inflation expectations are reducing in South Asia, with stable monetary and fiscal policies predicted.

Sector Specific Insights

• AI adoption is expected to boost growth, with 36% of economists foreseeing significant positive impacts.
• In the IT sector, AI is anticipated to drive productivity gains rapidly.
• Other sectors such as financial services, healthcare, and retail are labeled as 'fast-movers' in AI adoption.
• Cryptocurrencies are predicted to face further declines, and gold is expected to stabilize after recent peaks.

Regional Growth Expectations

• 66% of economists predict strong growth in South Asia, buoyed by India.
• East Asia and the Pacific: 45% expect strong growth, 55% moderate growth.
• MENA Region: 36% expect strong growth, 64% moderate growth.
• United States: 69% expect moderate growth, a significant improvement from previous estimates.
• China: Mixed outlook with 47% expecting moderate growth.
• Europe: Weakest outlook with 53% expecting weak growth.

Long-term Expectations

• AI is expected to cause job losses initially, but new job creation is anticipated in the long run.
• Globally, governments and companies are urged to navigate uncertainty with agility and invest in growth fundamentals.