As the final day of the World Economic Forum in Davos, Switzerland draws to a close, the focus has shifted to the health of the global economy and the growing geopolitical tensions that have dominated the agenda throughout the week.
The day’s programme features high-profile speakers such as European Central Bank President Christine Lagarde, International Monetary Fund Managing Director Kristalina Georgieva, and World Trade Organization Director-General Ngozi Okonjo-Iweala, who will share their insights on the Global Economic Outlook. Their assessments come amidst a darkening economic outlook, with warnings from the leaders of Germany and Canada about the rise of great power rivalries and concerns over whether the rapid advancement of artificial intelligence could trigger an unemployment crisis.
In a pre-recorded interview with CNN, Lagarde expressed her concerns about the erosion of trust, stating that “when you keep repeating the same pattern of undermining the rule of law, undermining the contracts, undermining what has been agreed between parties, then parties begin questioning, is that for real? Is that going to change again? And that’s when uncertainty looms large.” She also cautioned that Europe needs to examine its economic strengths and weaknesses, just in case the normal trade relationships are not restored.
S&P Global Ratings’ Chief Economist, Paul Gruenwald, reported that discussions about tariffs and macroeconomic issues have been less prevalent at Davos this year, which he attributes to the fact that 2025 turned out to be a relatively decent year for the global economy. This was due in part to a scaling back of trade tensions, combined with resilient consumer spending and a strong labour market. However, Gruenwald also noted that the offsetting demand from the AI and data centre investment boom and its spillovers through the trade channel have also played a role.
As the forum wraps up by lunchtime, it seems that many delegates have already departed Davos, perhaps to address the world’s ongoing challenges. The day’s agenda includes sessions on Next Generation Social Movements, Geopolitical Risks Outlook for 2026, the Meaning of Politics, and the Global Economic Outlook, providing a final opportunity for the global elite to tackle the pressing issues facing the world.