Global economic conditions are deteriorating: WEF economists

The impact of recent tariffs impossed by the US on a multitude of countries at the centre of it all

- YOGASHEN PILLAY

THE latest World Economic Forum (WEF) chief economists’ outlook for September paints a stark picture of a global economy grappling with persistent disruptions and mounting uncertainty.

This analysis, corroborated by South African economists, emerges from a comprehensive survey involving chief economists from various sectors, including Old Mutual Group's chief economists, Johann Els.

In a revealing appraisal, the report highlights a resilience amidst turbulence, yet underscores that growth prospects remain subdued, with significant risks skewed to the downside.

Notably, 72% of chief economists surveyed anticipate a deterioration in global economic conditions over the next year — a sentiment echoed across numerous economies facing prolonged instability.

The WEF report underscores the impact of recent tariffs imposed by the US on a multitude of countries, initiating a recalibration of global supply chains and investment flows.

While the depreciation of the dollar has afforded emerging economies greater monetary flexibility it has simultaneously amplified the domestic implications of these tariffs.

“The dollar's sharp depreciation has granted emerging economies greater monetary flexibility, but also amplified the domestic impact of tariffs) it said.