Economists attending the 2025 Summer Davos Forum have warned that the current uncertainties in the world could have a domino effect on the global economy, leaving no one spared, from businesses to consumers.
Paul Gruenwald, global chief economist at the S and P Global Ratings, said the uncertainties pose a challenge to international forecast institutions, so his team has almost given up making a prediction on each policy.
Notably, the impact of uncertainties on the economy has begun to manifest, he said, citing the uncertainty from the United States' trade policy. "Uncertainly has been the theme of this year. It has been mostly the trade policy uncertainty coming out of the U.S. When you have got a high level of uncertainty, firms are reluctant to invest, and consumers are reluctant to spend, and we have seen some closure [on the market],"said Gruenwald.
However, Asian countries, especially China, have been performing relatively well amid the impact of uncertainties, contributing 60 percent to the global economic growth, according to some economists at the forum.
Zhu Min, former deputy managing director of the International Monetary Fund (IMF), said China boasts a vast manufacturing sector, a huge consumer market and a wealth of application scenarios.
"First, in terms of the industrial scale, China accounts for 30 percent of the global manufacturing, which is a big share. With a population of 1.4 billion, it also has a huge consumer market. In addition, it has tens of millions of engineers, also an impressive number. Second, China provides a wide variety of scenarios, creating a good environment for software application," said Zhu.
The 2025 Summer Davos Forum, also known as the 16th Annual Meeting of New Champions of the World Economic Forum, kicked off Tuesday in Tianjin.
Featuring the theme "Entrepreneurship for a New Era," the three-day event is gathering over 1,700 leading figures from more than 90 countries and regions to explore how entrepreneurship and emerging technologies can unlock more dynamic and resilient economies.
Economists warn of domino effect on global economy amid uncertainties
