GLOBAL RECESSION LOOMS AS ECONOMISTS PREDICT WORST DOWNTURN

WEF urges a fundamental shift in economic growth, emphasizing a delicate balance of efficiency, sustainability, and equity, calling for a comprehensive strategy aligning speed, quality, innovation, and inclusion.

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In a sobering report released on Monday, the World Economic Forum (WEF) revealed that global economic growth is anticipated to plummet to its lowest rate in three decades by 2030. The report, titled "Future of Growth Report 2024," underscores the compounding impact of ongoing economic and geopolitical shocks, exacerbating challenges such as the climate crisis and a weakening social contract.

According to the WEF, a fundamental shift in the approach to economic growth is imperative, emphasizing a delicate balance between efficiency, long-term sustainability, and equity. The report highlights the interconnectedness of these factors and stresses the need for a comprehensive strategy that considers speed, quality, innovation, and inclusion together.

Analyzing growth quality across 107 economies, the report identifies that highincome economies excel in innovation and inclusion, whereas lower-income economies lag in sustainability. Saadia Zahidi, the Managing Director of WEF, emphasized that reigniting global growth is crucial, but growth alone is insufficient.

The report proposes a novel assessment framework that prioritizes sustainability, resilience, equity, and innovation in alignment with global and national priorities.

To catalyze this shift, the WEF has launched the 'Future of Growth' initiative, a at shaping a new narrative for economic growth. The initiative seeks to support policymakers, economists, and experts worldwide in identifying pathways that balance growth, innovation, inclusion, sustainability, and resilience goals.

However, against the backdrop of these aspirations, the Chief Economists Outlook report by the WEF warns of a weakening global economy in 2024. A survey of chief economists revealed that 56% anticipate a global economic slowdown, attributing it to factors such as tight financial conditions, geopolitical tensions, and rapid advances in generative artificial intelligence (AI).