Taking the Pulse of the New Economy

The document outlines a fragile global economic outlook characterized by social tensions, policy uncertainty, and the challenges of transitioning to a digital and green economy. It highlights the erosion of traditional monetary and competition policy tools and warns that the green transition may disproportionately impact low-income groups. While noting positive developments in corporate tax coordination, financial resilience via Basel III, and the US-China Phase One Deal, it calls for urgent updates to fiscal policy, competition frameworks, and social safety nets to ensure an inclusive transition.

• The global economy faces a fragile growth outlook marked by high uncertainty and social tensions stemming from polarized economic outcomes. Policy-making has become increasingly reactive, particularly in trade and technology, such as the rivalries surrounding 5G.
• Traditional economic policy tools are losing effectiveness; monetary policy is constrained by interest rates near zero in major currency areas, and competition authorities lack the tools to address the dynamics of the digital economy.
• The transition to a green economy presents significant distributional risks, potentially increasing income inequality and costing low-income groups more. This was exemplified by social unrest in France during 2018/19 following attempts to increase fuel taxes to cut carbon emissions.
• In emerging markets, the 'digital leapfrog' model has not matched the growth results of the manufacturing-led model of the 1990s and 2000s, and 'winner-take-all' dynamics may block future opportunities.
• There are positive indicators in global coordination, including OECD efforts to reduce tax base erosion and profit shifting (BEPS), and the Basel III agreement which has increased bank capital and liquidity requirements.
• The US-China Phase One Deal reached on 13 December 2019 is expected to stabilize trade flows and reduce global uncertainty by cutting tariffs on approximately $120 billion of Chinese exports to the US.
• Competition policy requires rapid upgrading because traditional benchmarks, like price hikes, are invalid when large data holdings are the primary guarantor of market power and competitive advantage.
• Business accountability is increasing through ESG standards, though reporting remains unsystematic and voluntary. There is a growing trend of financial activity shifting from public to private markets, which reduces transparency and oversight.

APA

World Economic Forum (2020). Taking the Pulse of the New Economy. http://www3.weforum.org/docs/WEF_Chief_Economists_Outlook_2020.pdf

Chicago

World Economic Forum. Taking the Pulse of the New Economy. 2020. http://www3.weforum.org/docs/WEF_Chief_Economists_Outlook_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Taking the Pulse of the New Economy |date=January 2020 |url=http://www3.weforum.org/docs/WEF_Chief_Economists_Outlook_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020taking, author = {{World Economic Forum}}, title = {{Taking the Pulse of the New Economy}}, institution = {World Economic Forum}, year = {2020}, month = jan, url = {http://www3.weforum.org/docs/WEF_Chief_Economists_Outlook_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }