Global Economy Faces Debt, Geopolitical Headwinds Despite Modest Improvement: WEF Report

• The global economic outlook has modestly improved, yet remains fragile due to rising debt, narrowing fiscal space, and shifting trade relationships.
• 53% of chief economists anticipate global economic conditions to weaken, an improvement from 72% in September 2025, indicating tentative stabilization.
• Global public debt hit $102 trillion in 2024, projected to near 100% of global GDP by 2029, with higher sovereign debt risks in emerging economies.
• Government spending priorities are shifting, with defense, digital infrastructure, and energy investment expected to rise, while environmental protection may decline.
• Trade patterns are realigning, with US–China tariffs persisting, competition focusing on technology, and South Asia (driven by India) showing strong growth prospects.

Why It Matters: Despite a slight improvement, the global economy remains vulnerable to debt, geopolitical shifts, and divergent regional growth.