WEF Reports Positive Shift in Global Economic Outlook Amid Uncertainties

However, the WEF cautioned that confidence in this stabilization is limited. Nearly all respondents, or 97 percent, identified geopolitical conflicts as a likely source of uncertainty over the next year. Additionally, 58 percent expect asset-price corrections, and only a quarter foresee increased resilience in the global economy.

Attilio Di Battista, head of economic growth and transformation at WEF, highlighted that while chief economists expect stabilization, geopolitical volatility, potential asset-price adjustments, scrutiny of artificial intelligence investments, and sustained cost-of-living pressures contribute to high uncertainty. He noted that government support has been crucial in navigating recent crises, but fiscal capacity may be more constrained in the future.

Di Battista emphasized the importance of strengthening resilience in preparation for future shocks. The report indicates a decrease in the proportion of economists who view fiscal support as a key source of resilience—only 28 percent anticipate it to be significant over the next 12 months, down from 69 percent since 2020.

Future economic resilience is expected to rely more on flexible supply chains, technological innovation, and energy-market adaptations, with the United States and China identified as best positioned to handle shocks. The report also notes that 97 percent of respondents foresee increased adoption of artificial intelligence, with 69 percent anticipating productivity gains from the technology.

However, 78 percent expect data center investments to substantially contribute to global growth yet predict significant local resistance to this expansion. Additionally, 61 percent do not foresee data center investments leading to notable job creation, and majorities anticipate rises in electricity (78 percent) and water (58 percent) prices.

The AI rivalry between China and the US appears set to narrow, as 69 percent of respondents believe Chinese large language models will approach those of the US within a year. Moreover, 77 percent expect an increase in geoeconomic fragmentation, with 55 percent predicting tariff hikes in the US and 43 percent in Europe.

As trade and investment adapt, two-thirds of the economists expect global trade volumes to rise, while 83 percent foresee increased Chinese exports to markets outside the US. The WEF report also highlights anticipated higher living costs, particularly in food (88 percent), electricity (83 percent), and transport (77 percent).

Most economists expect real incomes to stagnate or decline in many regions, except for Southeast Asia and India, where over 60 percent anticipate income growth. Governments are likely to respond with broad measures, including tax reductions on essential goods (60 percent), consumption subsidies (54 percent), and price caps (50 percent). Only 36 percent expect tax reductions for low-income households, and 26 percent foresee targeted cash transfers.

The survey was conducted from August 4 to 20, 2026.