India among strongest growth outlooks as global economy stabilises, WEF chief economists say

India has emerged among the economies with the strongest growth prospects as the global economic outlook shows signs of stabilising, although geopolitical tensions, rising living costs and tighter fiscal conditions continue to pose risks, according to the World Economic Forum’s latest Chief Economists’ Outlook.

The report, based on a survey conducted between August 4 and 20, 2026, found that 56% of chief economists expect the global economic outlook to remain stable or improve over the next 12 months. This marks a sharp shift from May, when 89% expected global conditions to weaken.

India among economies with stronger growth prospects

The report said growth prospects have strengthened across most regions, but remain uneven. India, South-East Asia, Central Asia and the US received the strongest assessments from the economists surveyed.

India also stands out on the outlook for household incomes. More than 60% of respondents expect real incomes to increase in India over the coming period. This contrasts with the broader global picture, where most economists expect real incomes to either stagnate or decline across regions.

The relatively positive income outlook comes even as economists expect cost-of-living pressures to persist globally, particularly for essential goods and services.

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Business environment ranking

India was also assessed as an important destination for multinational companies, although its position in the report’s business-environment assessment has changed.

The US was ranked as the most favourable business environment for multinational companies, followed by South-East Asia and Europe. India was placed fourth, while China remained fifth.

The report said the global business environment will continue to be shaped by changing trade and investment patterns, as economies adjust to increasing geoeconomic fragmentation.

Source: World Economic Forum, Chief Economists’ Outlook, September 2026.

Geopolitical risks remain high

Despite the improved global outlook, uncertainty remains elevated. Nearly all surveyed economists, or 97%, identified geopolitical conflicts as a likely source of uncertainty over the next year. Another 58% expect asset-price corrections.

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Fiscal policy could also become a constraint. While 69% of economists said fiscal support had been the most significant source of resilience for the global economy since 2020, only 28% expect it to play the same role over the next 12 months.

Economists instead expect future resilience to depend increasingly on flexible supply chains, technological innovation and adaptation in energy markets.

AI offers opportunity, but uncertainty remains

Artificial intelligence is another major factor shaping the outlook. About 97% of economists expect AI adoption to increase over the next year, while 69% anticipate meaningful productivity gains.

However, the rapid expansion of data centres could create new pressures. Around 79% expect significant community pushback against data-centre expansion, while 78% anticipate higher electricity prices and 58% expect water prices to rise.

The report therefore presents a mixed global picture: improving growth expectations, with India among the economies receiving the strongest assessments, but continued pressure from geopolitics, fiscal constraints, technology investment and household costs.

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