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16 June, 2024
 
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Europe faces weak growth amid global uncertainty

Survey predicts slow growth, regional disparities, and AI impact

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In a comprehensive survey released today, leading economists express apprehension about the global economy, anticipating a year of sluggish growth, primarily attributed to geopolitical conflicts, challenging financing conditions, and the impact of artificial intelligence.

Conducted annually before the World Economic Forum's meeting in Davos, the survey involved over 60 economists from the global private and public sectors, as reported by Reuters.

The findings reveal that 56% of respondents expect a weakening of overall global economic conditions in the coming year, highlighting a significant regional divergence. While optimism prevails for moderate or higher growth in China and the United States, a consensus emerges that Europe is likely to experience only weak or very weak growth.

On a more positive note, Southern and Eastern Asia, along with the Pacific region, show a favorable outlook, with a majority anticipating at least moderate growth in 2024. Respondents, influenced by statements from major central banks, anticipate easing financial conditions as inflation and labor market tightness subside.

Artificial intelligence casts a shadow over economic equality, as the survey indicates a disparity in its impact. While 94% foresee AI significantly boosting productivity in high-income economies over the next five years, only 53% predict the same for low-income economies.

In a separate study, the World Economic Forum (WEF) evaluates the "quality" of economic growth in 107 economies, concluding that many countries are growing in ways that are neither environmentally sustainable nor socially inclusive. Saadia Zahidi, Executive Director of the WEF, emphasizes the need for a resurgence in global growth but underscores that growth alone is insufficient.

As a response, the WEF announces the launch of a campaign aimed at defining a new approach to growth, emphasizing the importance of balancing economic growth with social, environmental, and other priorities. The initiative seeks to address key challenges and foster a more inclusive and sustainable global economic landscape.

[With infofrmation sourced from Reuters]

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