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The global economy is entering a period of heightened uncertainty as geopolitical tensions, inflation concerns and supply chain disruptions weaken growth expectations, according to a new report released by the World Economic Forum.

The latest Chief Economists’ Outlook found that nearly nine in ten surveyed economists expect global economic growth to weaken over the next 12 months. However, only 13% believe a global recession is likely during the same period.

The report said the worsening outlook is linked largely to instability in the Middle East and disruptions linked to the Strait of Hormuz, a key global energy shipping route. Economists warned that prolonged disruption could significantly affect global trade, energy markets and food prices.

Inflation Risks Rise Across Global Markets

According to the survey, 94% of chief economists expect global inflation to rise over the coming year. Rising energy costs and supply chain disruptions were identified as the main drivers behind inflation concerns.

The report noted that financial markets could also face growing volatility. Around 79% of respondents expect higher instability in private debt markets, while 74% predict increased volatility in public debt markets. More than two-thirds also expect stronger fluctuations in stock markets.

Regional economic conditions are expected to vary sharply. Economists forecast weaker growth across the Middle East and North Africa, while Europe faces rising stagflation risks due to slowing growth and persistent inflation pressures.

By contrast, India and the US are expected to remain relatively resilient because of strong domestic demand and investment activity.