Global economic prospects remain subdued and are fraught with uncertainty as more than half of chief economists expect the world economy to further weaken this year, a World Economic Forum report has said.

With uncertainty clouding the near-term economic outlook, a majority of public and private sector chief economists surveyed by the WEF warned of rising fiscal strains (79 per cent) and divergence between higher- and lower-income economies (66 per cent).

“Amid accelerating divergence, the resilience of the global economy will continue to be tested in the year ahead,” WEF managing directotr Saadia Zahidi said in the forum’s latest Chief Economists Outlook report on Monday.

“Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening and inequalities are rising.”

The report highlights the “precarious nature of the current economic environment” and there is an urgent need for global co-operation to build momentum for sustainable and inclusive economic growth, Ms Zahidi added.

Source: thenationalnews