The global economy is navigating a period of uncertainty, marked by trade policy shocks, technological disruptions, and demographic shifts. Recent reports and announcements from the World Economic Forum (WEF) highlight critical trends shaping the future, from economic growth challenges to organizational governance changes and strategies for aging societies.
These developments underscore the need for collaborative, innovative approaches to foster resilience and sustainability in an increasingly complex world.
The WEF’s Chief Economists Outlook report unveils a sobering picture of the global economic landscape.
Rising economic nationalism and tariff volatility are fueling uncertainty, stalling long-term decision-making, and contributing to a worsened global economic outlook since the start of the year.
According to the report, 79% of chief economists view current geoeconomic developments as a significant structural shift rather than a temporary disruption.
The growth outlook varies regionally: North America faces weak prospects, Asia-Pacific shows resilience, and Europe exhibits cautious optimism, particularly due to anticipated fiscal expansion in countries like Germany.
However, 77% of economists anticipate weak or very weak growth in the U.S. through 2025, coupled with high inflation (79%) and a weakening dollar (76%).
Artificial intelligence (AI) is a double-edged sword in this context.
While 46% of chief economists expect AI to boost global GDP by 0-5% over the next decade, and 35% project gains of 5-10%, nearly half (47%) anticipate net job losses due to automation.
Key growth drivers include task automation (68%), accelerated innovation (62%), and worker augmentation (49%).
However, risks such as AI-driven disinformation (53%), market power concentration (47%), and disruption of business models (44%) loom large.
Additionally, 86% of economists expect increased government borrowing to meet rising defense spending, potentially crowding out investments in public services and infrastructure, further straining debt sustainability.
The report emphasizes the need for bold action from governments and businesses to harness AI’s potential while mitigating its risks.
Amid these economic challenges, the WEF announced a significant governance transition on April 21, 2025.
Klaus Schwab, the organization’s founder and chairman for 55 years, stepped down from his role as Chair and member of the Board of Trustees.
Schwab’s leadership transformed the WEF into a leading global platform for dialogue, hosting nearly 3,000 leaders annually at its Davos meeting to address pressing global issues.
The Board unanimously appointed Vice Chairman Peter Brabeck-Letmathe as Chairman ad interim and established a Search Committee to select a future chair.
This transition comes at a critical juncture, as the WEF reaffirms its commitment to fostering inclusive dialogue to navigate global complexity and drive progress.
The organization’s mission remains steadfast: to engage business, political, academic, and civil society leaders to shape global, regional, and industry agendas.
The WEF’s report, Future-Proofing the Longevity Economy: Innovations and Key Trends addresses the economic implications of aging societies.
With global populations aging rapidly—projected to see the proportion of people over 60 nearly double from 12% in 2015 to 22% by 2050—businesses, policymakers, and institutions must adapt.
The report, developed with Mercer and over 50 organizations, identifies five key trends and proposes 10 critical actions to enhance financial resilience, equitable healthy aging, and lifelong fulfillment.
These include modernizing pension systems, promoting flexible work structures, and supporting caregiving.
In partnership with Manulife, the WEF’s UpLink initiative launched the Innovating for Asia’s Demographic Future challenge, calling for startups to address these issues in Asia.
These WEF updates highlight the interconnected challenges of economic uncertainty, technological disruption, and demographic change.
The Chief Economists Outlook underscores the need for strategic responses to trade and AI disruptions, while the governance transition signals a new chapter for the WEF’s mission of fostering collaboration.
Meanwhile, the focus on aging societies emphasizes proactive innovation to ensure economic resilience.
Together, these insights call for cross-sector cooperation to navigate the intelligent age and build a sustainable, inclusive global economy.