Economic leaders at Davos say global growth is resilient despite Trump
disruption
[January 24, 2026] By
DAVID McHUGH and JAMEY KEATEN
DAVOS, Switzerland (AP) — Leading global economic policymakers at the
World Economic Forum in Davos urged countries and businesses to filter
out the turmoil from a week of clashes with the Trump administration and
focus on boosting growth and fighting inequality in a world where trade
will continue to flow and international cooperation is still badly
needed.
The global economy is showing unexpected resilience despite the noise,
European Central Bank head Christine Lagarde, International Monetary
Fund head Kristalina Georgieva and World Trade Organization head Ngozi
Okonjo-Iweala said in a panel discussion Friday. But while growth is
holding up, troubles like worrisome levels of government debt and
inequality loom.
That resilience continues despite disruptions from US trade policy under
President Donald Trump, who roiled the weeklong forum with threats to
impose tariffs on countries supporting Greenland against a US takeover
bid, then withdrew the tariff proposal.
What is now needed, they said, are efforts to boost growth to offset
heavy debt levels around the world and ensure that disruptive
technologies like artificial intelligence don't worsen inequality or
devastate labor markets. And Europe needs to boost productivity and
improve its business climate for investment.
Georgieva said the IMF’s recently raised forecast of 3.3% global growth
for this year was “beautiful but not enough... do not fall into
complacency.”
She said that level of growth wasn’t enough to wear down “the debt that
is hanging around our necks” and that governments need to take care of
“those who are falling off the wagon.”
"We have to look at Plan B, or Plans B," said Lagarde. “I think we've
had a lot of noise this week... and we need to distinguish the signal
from the noise... we should be talking about alternatives."
She responded to the “Europe bashing” heard during the summit by saying,
“we should say thank you to the bashers” for underlining Europe’s need
to improve its investment climate and promote innovation.
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A general view shows the congress center during the 56th annual
meeting of the World Economic Forum, WEF, in Davos, Switzerland, on
Wednesday Jan. 21, 2026. (Michael Buholzer/Keystone via AP)
 Lagarde downplayed a provocative
speech at the forum from Canadian Prime Minister Mark Carney, who
called Trump's approach a “rupture” with an international order
based on rules, trade and cooperation and said that way of doing
business was “not coming back.” “From an economic and business point
of view we depend on each other,” she said.
Okonji-Oweal pointed out that 72% of global trade still takes place
under WTO rules, where countries agree to charge all trading
partners the same tariffs. That's despite “the biggest disruption in
80 years.”
“Resiliency is built into the system, and that is showing up,” she
said. She conceded that “I don't think we'll go back to where we
were.”
Georgieva offered a historical perspective: "We have always traded
and we will always trade. Trade is like a river, water. You put
obstacle, it goes around it. Yes, it would be different, but there
would be always the necessity of Dr. Ngozi to look over world
trade.”
Georgieva also conceded things had changed for good: “How many of
you have seen the movie, ”The Wizard of Oz?".... We are not in
Kansas any more."
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