Geneva, Switzerland, 01 June – The global economic outlook has deteriorated sharply in recent weeks, according to the latest edition of the World Economic Forum’s Chief Economists’ Outlook published today.

 

Nearly nine in ten chief economists surveyed expect global growth to weaken over the next 12 months, reversing the cautious optimism seen at the start of the year, as conflict in the Middle East and the closure of the Strait of Hormuz fuel concerns over a major global economic shock.

 

Chief economists already rank the current closure duration of the Strait of Hormuz as significantly more disruptive than last year’s tariff turmoil. If the closure persists into the second half of the year, they expect its impact could approach the severity of the COVID-19 crisis, compounding effects across global supply chains, energy and food costs. An overwhelming 94% of the surveyed chief economists expect global inflation to increase over the coming year.

 

“Only months ago, the Chief Economists community was cautiously optimistic. The conflict in the Middle East changed that, and the economic scarring from the situation thus far is already expected to last into the months ahead,” said Saadia Zahidi, Managing Director, World Economic Forum. “The longer the disruption lasts, the heavier the long-term cost for those who can least afford it.”   - (ANA) -

 

AB/ANA/01 June 2026  - - -