INDIA STORY INTACT: WEF

CHIEF ECONOMISTS SEE GLOBAL GROWTH COMING UNDER STRAIN

- PRESS TRUST OF INDIA

Chief economists from across the world are the most optimistic about a strong economic expansion in South Asia, with India looking set to be the primary engine of growth in 2025 and 2026, a new survey showed Wednesday.

The chief economists, however, warned of the overall global growth coming under strain from trade policy shocks and AI disruption, the World Economic Forum (WEF) said in its latest 'Chief Economists Outlook' report.

A majority of surveyed economists saw the current US economic policy as having a lasting global impact, with 87 per cent expecting it to delay strategic business decisions and heighten recession risks.

The global growth outlook was divided, with weak prospects in North America, resilience in Asia-Pacific and cautious optimism in Europe.

"The outlook for China remains muted, and the chief economists were divided over whether it will reach its target of 5 per cent GDP growth this year. "Optimism remains highest for South Asia, where 33 per cent expect strong or very strong growth this year," the WEF said.

The survey of chief economists from across the world in private and public sectors found that the growth outlook for South Asia has been robust despite a challenging global environment.