Wef 2025: Fragmentation Will Hit Multinationals, Say Economists

Over three-quarters of chief economists expect multinational companies to embark on potentially costly changes as a result of increasing global economic fragmentation, according to a survey by the World Economic Forum WEF.

Four days ahead of WEFs annual meeting in Davos, the WEFs Chief Economists Outlook compiled the views of chief economists to draw a picture of increasing global economic dislocation.

91 of economists polled expect multinationals to restructure their supply chains, and 90 expect firms to regionalise their operations as a result of fragmentation. 79 expect them to focus on activity in core markets and 76 expect exits from high-risk markets.

The latest Chief Economists Outlook reveals a global economy under considerable strain, said Aengus Collins, head of economic growth and transformation at WEF.

The report highlighted the intensifying trade tensions expected in the coming years between major powers and more broadly. Factors that will contribute to such tensions and fragmentation include protectionism, conflict, sanctions and national security concerns, the report predicts.