Davos 2024: Leaders watch global economy with a cautious optimism

livemint.com:

global economy is on everyone’s mind. In 2023, global growth was quite resilient and inflation also toned down. Several countries such as the US and China did relatively well in the second half of 2023.

India’s exceptional growth has of course been the highlight of the world economy in the past year. In 2024, people anticipate Europe to bounce back faster whereas the US might take more time to stabilize. Some leaders are predicting a soft landing on both sides of the Atlantic even as interest rates start coming down.

• The optimism is tempered by worries about geopolitics and its effect on global supply chains. Supply chains continue to be under stress but there is faith in the resilience of supply chains and emergence of alternate routes. • In 2024, over 58 countries will see general elections including some of the world’s biggest economies, the US, the UK, and India.

Every company is keenly looking at the elections outcomes and possible implications for geopolitics. In India, at least, the markets expect a vote of continuity . • Artificial Intelligence – and its impact on entire business sectors and employment – is of course the hot topic.

The technology leaders – from OpenAI, DeepMind, Microsoft and others – are the most sought out this year. AI’s impact on the environment was another hot topic – with Microsoft chief Satya Nadella talking candidly about the massive energy needs required to power the AI revolution and possible solutions to address the challenge. • A few quarters believe that the world is not meeting its climate targets.

There is a need to address the problem of costs through alternative technologies to accelerate the Net Zero commitments. The India story continues to make a buzz at Davos. • India’s