Boom or bust? Global economy straddles both

SHORT-TERM GAINS PAIRED WITH LONG-TERM UNCERTAINTY

- BY JUSTIN VARGHESE Your Money Editor

The global economy is sending mixed signals. On one side, the World Economic Forum (WEF) says the world is sliding into an era of weak growth and systemic disruption.

On the other, the OECD has upgraded this year’s global growth forecast, pointing to surprising resilience in the face of trade tensions and technological change.

The clash of views underscores one reality: while the short term looks steadier than many feared, the long-term path remains fragile.

New order takes shape

The WEF’s Chief Economists’ Outlook, released this week, paints a stark picture. Nearly three-quarters of the world’s leading economists believe the global economy will weaken in 2026, shaped not by short-term shocks but by structural forces:

■Persistent trade disruption

■Ongoing technological shifts

■Strains on natural resources and energy

■Weakening global institutions

Saadia Zahidi, Managing Director at WEF, warned that these disruptions are already redrawing the map of global growth.