MENA, Asian Regions Seen As Main Growth Engines In Emerging Markets -- WEF

KUALA LUMPUR, Sept 23 (Bernama) -- Emerging markets are anticipated to be the main engines of growth going forward, with the Middle East and North Africa (MENA), South Asia, East Asia and the Pacific seen as bright spots, according to the World Economic Forum (WEF).

The WEF Chief Economists’ Outlook report released today said that one in three chief economists expect strong or very strong growth in these regions. 

"The outlook for China is more mixed, with 56 per cent of chief economists anticipating moderate growth, though deflationary pressures are expected to persist. However, growth is expected to remain more stagnant in advanced economies," it said.

Meanwhile, the WEF reported that 72 per cent of surveyed chief economists expect the global economy to weaken over the next year, amid intensifying trade disruption, rising policy uncertainty and accelerating technological change.

It said the chief economists strongly agreed that today’s disruptions are structural rather than cyclical, with the majority anticipating long-term disruption in natural resources and energy (78 per cent), technology and innovation (75 per cent), trade and global value chains (63 per cent) and global economic institutions (63 per cent). 

"This marks an important shift. The global economy is not so much weathering isolated shocks as realigning, raising the stakes for new forms of leadership, cooperation and resilience," it said.

On the other hand, the outlook report noted that the US dollar had depreciated by more than 10 per cent since January, the steepest decline since 1973. It said 78 per cent of the chief economists surveyed expect the dollar to weaken further in the year ahead. 

"While this gives emerging and developing economies greater monetary policy flexibility, it also amplifies the domestic impact of tariffs in the US by further raising the cost of imports,” it added.

-- BERNAMA