Chief Economists Show Cautious Optimism Amid Global Debt Concerns

A survey reveals that chief economists have mixed feelings about the global economy, with South Asia outperforming due to India's strong performance. While easing inflation sparks optimism, high debt levels and fiscal challenges pose significant risks worldwide. The survey underscores limited fiscal space and long-term threat posed by growing debt.

A recent survey of chief economists reveals a mixed outlook for the global economy. South Asia, driven by India's robust performance, has emerged as the best performer. However, easing inflation and strong global commerce are tempered by concerns over rising debt levels, according to the World Economic Forum's latest Chief Economists Outlook.

The report highlights that elevated debt levels and fiscal pressures are significant threats to economies worldwide, leaving them vulnerable to potential fiscal crises. Economists are particularly worried about debt-servicing costs limiting government investment in vital sectors like infrastructure, education, and healthcare.

Further, the survey indicates that expectations for economic growth vary by region. The US shows signs of optimism with nearly 90% of economists predicting moderate to strong growth, while Europe and China face weaker forecasts. Meanwhile, over 70% of economists project strong growth for South Asia in the coming years.

(With inputs from agencies.)