Global Economy Expected to Stabilize Amid Challenges

Sep 23, 2026

80 min

Sep 23, 2026 00:30

WEF's Chief Economists expect global economy to stabilise

## Economic Outlook

The World Economic Forum's latest survey reveals that 56% of chief economists anticipate the global economy to stabilize or improve, marking a significant shift from May when 89% predicted a downturn. However, concerns remain about the sustainability of this stabilization.

## Geopolitical and Economic Risks

Geopolitical tensions are a major concern, with 97% of economists citing them as potential disruptors. Additionally, 58% foresee possible corrections in asset prices, and only a quarter believe the global economy will become more resilient.

## Fiscal Support and Future Resilience

Since 2020, fiscal measures have been crucial in managing economic shocks, but only 28% of economists expect this support to continue at the same level. Future resilience is likely to rely on adaptable supply chains, technological advancements, and energy market changes, with the US and China seen as well-positioned to handle future challenges.

## AI and Technological Advancements

Artificial intelligence is expected to play a significant role, with 97% of respondents predicting increased adoption and 69% anticipating productivity gains. However, the expansion of data centers, while driving growth, may face local resistance and lead to higher electricity and water costs.

## Cost of Living and Income Trends

Rising costs of living, particularly in food, electricity, and transport, are expected, with most economists predicting stagnant or declining real incomes globally, except in South-East Asia and India where income growth is anticipated.

## Government Responses

Governments are likely to implement broad measures such as tax cuts on essential goods, consumption subsidies, and price caps to address economic challenges, though targeted support for low-income households is less expected.

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