Global economic prospects for the coming year appear subdued and uncertain, according to a survey of prominent economists released on Monday. Conducted annually before the World Economic Forum's (WEF) meeting in Davos, the survey gathered insights from over 60 chief economists globally, spanning both private and public sectors. A majority, 56%, anticipate a weakening of overall global economic conditions in the face of geopolitical tensions, constrained financing, and the disruptive influence of artificial intelligence.

The survey revealed a divergence in regional growth expectations, with China and the United States anticipated to experience moderate or strong growth, while Europe is expected to struggle with weak or very weak growth. In contrast, South Asia and East Asia-Pacific present a more positive outlook, with a high majority foreseeing at least moderate growth in 2024.

Despite signals from major central banks suggesting that interest rates have peaked, 70% of respondents anticipate a loosening of financial conditions as inflation subsides and labor markets ease tightness. Notably, artificial intelligence is predicted to have a disparate impact on the global economy. While 94% foresee AI significantly enhancing productivity in high-income economies over the next five years, only 53% predict a similar impact for low-income economies.

In a parallel study, the WEF evaluated the "quality" of economic growth across 107 economies, revealing that most countries are experiencing growth that is neither environmentally sustainable nor socially inclusive. In response, the WEF is launching a campaign to redefine the approach to growth, aiming to assist policymakers in achieving a balance between economic, social, and environmental priorities.

Saadia Zahidi, Managing Director of the World Economic Forum, emphasized the importance of reigniting global growth to address key challenges but highlighted that growth alone is insufficient. The WEF's campaign seeks to provide a new perspective on growth that integrates social, environmental, and other considerations.