India emerges as strongest growth story in WEF outlook despite global slowdown fears
New Delhi, May 29
India emerged as the strongest growth story in the survey, with 52 per cent of chief economists expecting strong or very strong growth over the next 12 months, making it the geography with the most optimistic growth outlook.
"India stands out as the most upbeat growth story in the survey," the report noted. "Slightly more than half of the chief economists, or 52%, expect strong or very strong growth there over the next 12 months."
The report said India, along with the United States, is expected to remain relatively resilient despite global uncertainty, supported by robust domestic demand, infrastructure spending, investment momentum, trade agreements and policy support measures.
The report highlighted widening regional divergence in growth prospects. While Europe faces mounting stagflation risks and the Middle East and North Africa region is expected to witness the sharpest deterioration in growth, India and parts of South-East Asia are seen as comparatively resilient.
However, the WEF also flagged inflationary pressures for India, with 61 per cent of respondents projecting high or very high inflation in the country over the coming year as rising energy costs weigh on the economy.
Globally, the report said that 89 per cent of surveyed chief economists expect global growth to weaken over the next 12 months as the conflict in the Middle East and the closure of the Strait of Hormuz disrupt energy, food and fertilizer flows, raising inflationary pressures and increasing supply chain risks.
"The global economic outlook has darkened, according to the latest Chief Economists' Outlook," the WEF said in the report, adding that the closure of the Strait of Hormuz has "disrupted vital energy, food and fertilizer flows, threatening access and growth."
According to the survey, 94 per cent of chief economists expect global inflation to rise over the coming year due to higher energy and food prices caused by the disruption.
However, despite the worsening outlook, only 13 per cent of respondents believe a global recession is likely within the next year.
The WEF said the broader message from chief economists is that the global economy is entering a period of heightened volatility driven by geopolitical conflict, supply-chain stress, energy insecurity and uneven technological transformation.
— ANI
Reader Comments
Great to see India shining in global reports. The WEF outlook mentioning domestic demand, infrastructure, and trade agreements is spot on. However, the inflation red flag is real—rising energy costs will hit the common man hard if not managed well. Let's hope smart policies keep this growth sustainable.
This is a pat on the back for India's economic resilience! But let's be honest—growth numbers don't always trickle down to the common household. Inflation at 61% projection is a clear sign that the pain is real. We need inclusive growth, not just headline optimism. 🧐
India's growth story is indeed impressive, but the global headwinds are real. With Middle East tensions and Strait of Hormuz risks, our energy imports could get costlier. 52% optimism is great, but we should not be complacent. The 94% global inflation expectation is a red flag for everyone.
Yes, India is the brightest spot in this WEF survey! But I'm a bit skeptical—52% strong growth expectation is good but not stellar. And inflation at 61% is scary for the aam aadmi. We must focus on job creation and price control, not just GDP numbers. Jai Hind! 🇮🇳
Good news for India, but let's not get carried away. The WEF report itself flags inflation and global volatility. Our resilience is due to domestic demand, but if energy costs keep rising, it's the middle class that will suffer. Need more focus on renewables to reduce import dependency.
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