The World Economic Forum’s May 2025 Chief Economists Outlook presents a concerning assessment of the global economic landscape, highlighting deteriorating growth prospects, mounting inflationary pressures, and increasing trade fragmentation driven by escalating geopolitical tensions. The majority of surveyed chief economists anticipate subdued economic performance across both U.S. and global markets, with policy shifts, particularly U.S. tariff increases and corresponding retaliatory trade measures, serving as primary catalysts for this downturn.
While artificial intelligence presents significant long-term growth opportunities, persistent uncertainty, potential policy missteps, and anticipated labour market disruptions continue to overshadow near-term prospects. The report emphasizes the critical need for businesses and governments to enhance their adaptive capacity through increased operational agility, strategic AI integration, and comprehensive global economic resilience planning, to navigate these challenging conditions effectively. Read the full report.