Archive · 2 Jun 2025
WEF: US Policy Uncertainty Delays Business, Fuels Recession Risk
The World Economic Forum surveyed chief economists, and they're worried!
They say the US government's policies are making businesses around the world pause big decisions.
This is causing a lot of uncertainty, like a guessing game for companies.
Economists believe the world is going through big changes, not just a temporary phase.
They expect less trade and slower growth, and governments will probably need to borrow more money, which could cause problems.
AI is seen as a boost, but experts also have worries about job losses.
They are calling for teamwork between governments and businesses to fix these challenges.
Chief economists say US policies are delaying global business decisions.
Trade, monetary, and fiscal policy are main sources of uncertainty.
82% describe global uncertainty as exceptionally high.
Economists anticipate AI will boost GDP but also cause job losses.
Coordinated action by governments and businesses is urged.
- Who
- Chief economists surveyed by the World Economic Forum.
- What
- US policy uncertainty is delaying business decisions and increasing recession risk.
- When
- The survey was conducted in April 2025, and the report was released on Wednesday, May 28.
- Where
- Global, with a focus on US economic policy effects.
- Why
- To assess the future of global economic growth and identify key challenges.
- Report Publisher
- World Economic Forum (WEF)
- Survey Date
- April 2025
- Economists' View of Global Uncertainty
- Exceptionally high (82%)
- Economists Expecting US Policy to Delay Business
- 87%
- Expected Government Borrowing Increase
- 86%
- AI Contribution to Global GDP (Modest Increase)
- Up to five percentage points (Nearly Half)