India Exhibits Strongest Growth Prospects Amid Weakening Global Economic Outlook: WEF Survey

Global Economic Growth Expected to Weaken, Except in India

A recent survey conducted by the World Economic Forum (WEF) has revealed that chief economists worldwide anticipate a decline in global economic growth over the next year. The survey, known as the Chief Economists' Outlook, showed that nearly nine in ten chief economists expect the global economy to weaken, although only 13% believe a global recession is possible.

According to the survey, 94% of respondents expect global inflation to rise due to the closure of the Strait of Hormuz, which has driven up energy and food costs and disrupted supply chains. The closure of the Strait of Hormuz has been ranked by chief economists as significantly more disruptive than last year's tariff turmoil. If the closure persists in the second half of the year, its impact could approach the severity of the COVID-19 crisis, compounding effects across global supply chains, energy, and food costs.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The crisis is expected to hit the Middle East and North Africa region the hardest. However, India and the United States are expected to remain relatively resilient, supported by domestic demand and investment. The WEF noted that India's growth prospects continue to stand out, with 52% of chief economists surveyed expecting strong or very strong growth in the year ahead.

India's economy remains resilient, with growth for 2026-27 projected at 6.5%. However, the country still faces rising risks from the conflict in the Middle East. The depreciation pressures have forced the central bank to shed USD 40 billion in foreign-exchange reserves in March to stabilize the currency.

The WEF highlighted India as a geography with the strongest growth expectations in the survey, citing the country's ability to maintain an active economic policy stance and expand market access. India has kept opening channels for trade and capital, entering into new agreements, including with the EU. The country's blend of scale, growth, and potential among large emerging markets makes it an attractive option for businesses.