WEF surveys Vlags Weak 2026 Outlook: Global Growth in view of disruption; American rates are a challenge for India – The Times of India

The global economy discusses a phase of weak growth and systemic disruption, the World Economic Forum (WEF) said in the prospects of its latest Chief Economists released on Tuesday.India, projected by the IMF to grow by 6.5 percent in 2025, will remain the fastest growing large economy, but the production ambitions are confronted with obstacles of the newly announced 50 percent American rates for export-a development that weighs on the broader South Asian prospects, PTI reported.According to the survey, 72 percent of the Chief Economists expects worldwide growth to weaken in 2026, referring to intensifying trade disruption, policy uncertainty and accelerating technological change. The report emphasized a shift to a new economic environment characterized by persistent disruption and growing fragmentation.Emerging markets are seen as the most important growth engines, with the Middle East and North Africa (Mena), South Asia and East Asia-Pacific identified as clear places. One in three economists expected strong or very strong growth in these regions.The prospects for China were more mixed, with 56 percent of the respondents who anticipate moderate growth, although the deflatory pressure is expected to continue. The growth in advanced economies is expected to remain modest. In Europe, 40 percent expect weak growth, while in the US 52 percent of the respondents expect weak or very weak growth.Chief economists also warned about broadening the divergence between advanced and developing countries, with 56 percent expected the gap to grow in the next three years.“The contours of a new economic environment are already taking shape, defined by disruption in trade, technology, resources and institutions,” said Saadia Zahidi, director of WEF. “Leaders must adapt to urgency and cooperation to change today’s turbulence in the resilience of tomorrow,” she added.The report noted that in decades the world economy experiences one of its most turbulent phases, with a convergence of shocks and structural shifts that reform growth, trade and administration. “The proof of change is everywhere. The US has been pulled back from its post -war role as champion of the free market, China bends its economic muscle, Germany has left the tax reluctance, India has emerged as the fastest growing big economy and Japan is navigating in a generation,” said it.The growth meter expectations for South Asia are somewhat softened, with 31 percent of the most important economists now expected strong or very strong growth from the coming year compared to 33 percent in April. The share that moderate growth has risen from 55 percent to 66 percent.Inflation has fallen sharply in India, which means that policy makers have more room for stability. The reserve Bank of India kept the rates stable in August after the inflation of consumer price in July fell to 1.55 percent, the lowest since 2017, before returning to 2.07 percent at the end of August.The government continues to work for its 4.4 percent tax deficit and has radical changes in the tax regime of goods and services, De WEF noted.In South Asia, 64 percent of economists expect moderate inflation the following year, 74 percent do not expect a change in monetary policy and 80 percent see the tax policy remain stable.