According to analysts at the World Economic Forum, this year is likely to be challenging for the global economy. They warn countries against another financial collapse.
In other words, the economic outlook for the current year is quite gloomy. The global economy may have to deal with one problem after another.
According to the estimates provided by the WEF officials, the global economy may face a lot of dangers in 2024. Such a prediction could be explained by geopolitical tensions, rising interest rates, and potential threats from artificial intelligence (AI). Such conclusions were made by 60 chief economists from around the world who gathered at the annual World Economic Forum (WEF) in Davos, Switzerland.
Meanwhile, a recent Reuters survey unveiled that 56% of respondents expected global economic conditions to worsen this year. Curiously, analysts emphasized significant differences between regions. Most of the surveyed economists foresee moderate or even strong growth in the US and Chinese economies. However, in Europe, economic growth is expected to be sluggish. Experts are more optimistic about the Asian and Pacific regions, predicting moderate expansion in 2024.
Reuters has found out that 70% of economists suppose interest rates have peaked. However, as inflation weakens and the labor market stabilizes, interest rates may decrease. The issue of artificial intelligence (AI) deserves special attention. According to experts, its impact on economies will be uneven. About 94% of respondents think that in high-income countries, AI boosts labor productivity dramatically. At the same time, only 53% of respondents expect a similar result in low-income countries.
Earlier, experts at Oxfam, the international organization for combating inequality, predicted that the first trillionaire would appear in the world by 2034 if current trends continued. Meanwhile, it will take humanity 230 years to combat poverty. Oxfam also drew attention to the rapid growth of inequality in the world. While the five richest billionaires have doubled their wealth in the last four years, almost 5 billion people worldwide have become poorer.
