Chief Economists’ Outlook

The May 2026 Chief Economists’ Outlook reports a significant decline in global economic sentiment, with 89% of surveyed economists expecting growth to weaken over the next 12 months. This deterioration is primarily driven by conflict in the Middle East and the closure of the Strait of Hormuz, which has disrupted energy and fertilizer supplies, pushed Brent crude above $110 a barrel, and increased global inflation expectations. While AI adoption remains a source of optimism, expectations for the speed of productivity gains are moderating across most industries. Regional outlooks diverge, with India and the US showing relative resilience, while Europe faces stagflation risks and the Middle East and North Africa experience sharp growth deterioration.

• Global economic sentiment has deteriorated sharply, with 89% of surveyed chief economists anticipating that global growth will weaken over the next 12 months, and 21% expecting it to be significantly weaker.
• The closure of the Strait of Hormuz and conflict in the Middle East have caused severe supply chain disruptions, particularly for fuel, fertilizer, and LNG, with Brent crude prices exceeding $110 a barrel at the time of writing.
• Inflationary pressures are expected to rise globally, with 94% of surveyed economists predicting higher inflation driven by energy and food price shocks.
• While over 90% of economists expect AI adoption to increase, the anticipated timeline for meaningful productivity gains has lengthened for most industries, suggesting a more staggered macroeconomic payoff.
• Market volatility is expected to increase across private debt (79%), public debt (74%), and global stock markets (68%) over the next year.
• Regional economic outlooks are divergent: India and the US are expected to maintain moderate to strong growth, while Europe faces stagflation risks and the Middle East and North Africa see a sharp deterioration in growth and employment.
• The US, India, and South-East Asia are currently viewed as the most attractive business environments for multinational companies due to scale, flexibility, and supply-chain positioning.
• The energy and materials industry is the most disrupted by the Middle East conflict, followed by supply chain and transport services, and leisure and travel.

APA

World Economic Forum (2026). Chief Economists’ Outlook. https://reports.weforum.org/docs/WEF_Chief_Economists_Outlook_May_2026.pdf

Chicago

World Economic Forum. Chief Economists’ Outlook. 2026. https://reports.weforum.org/docs/WEF_Chief_Economists_Outlook_May_2026.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Chief Economists’ Outlook |date=May 2026 |url=https://reports.weforum.org/docs/WEF_Chief_Economists_Outlook_May_2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2026chief, author = {{World Economic Forum}}, title = {{Chief Economists’ Outlook}}, institution = {World Economic Forum}, year = {2026}, month = may, url = {https://reports.weforum.org/docs/WEF_Chief_Economists_Outlook_May_2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }