Economic leaders at Davos say global growth is resilient despite Trump disruption

Global Economic Leaders at Davos Urge Focus on Growth Amid Political Noise

Economic leaders at the World Economic Forum in Davos called for countries and businesses to look beyond recent political turbulence and concentrate on sustainable growth and reducing inequality in an interconnected global economy.

Despite a week marked by tensions with the Trump administration, including threats of tariffs related to Greenland that were later withdrawn, top financial officials emphasized the resilience of international trade and cooperation during Friday’s panel discussion.

“The global economy is showing unexpected resilience despite the noise,” said European Central Bank President Christine Lagarde, joined by International Monetary Fund Managing Director Kristalina Georgieva and World Trade Organization Director-General Ngozi Okonjo-Iweala.

Georgieva highlighted the IMF’s recently upgraded global growth forecast of 3.3% for this year, but cautioned against complacency. “It’s beautiful but not enough,” she warned, noting that current growth rates are insufficient to reduce concerning debt levels in many countries.

“We have to look at Plan B, or Plans B,” Lagarde added. “I think we’ve had a lot of noise this week… and we need to distinguish the signal from the noise.” She suggested that criticism of Europe during the summit should be viewed constructively, as it highlights areas where the continent needs to improve its investment climate and promote innovation.

The panel discussion took place against the backdrop of Canadian Prime Minister Mark Carney’s provocative speech, which characterized Trump’s approach as a “rupture” with the rules-based international order. Carney asserted that this traditional framework of global cooperation “is not coming back.”

Lagarde downplayed these concerns, emphasizing ongoing economic interdependence. “From an economic and business point of view, we depend on each other,” she said.

Okonjo-Iweala offered a more measured assessment of current trade dynamics, noting that 72% of global trade still operates under WTO rules, where countries agree to charge all trading partners the same tariffs. This has persisted despite what she called “the biggest disruption in 80 years.”

“Resiliency is built into the system, and that is showing up,” Okonjo-Iweala said, though she acknowledged, “I don’t think we’ll go back to where we were.”

Georgieva used a metaphor to illustrate the adaptability of global trade: “We have always traded and we will always trade. Trade is like a river, water. You put obstacle, it goes around it.” She added with a cultural reference, “How many of you have seen the movie, ‘The Wizard of Oz’?… We are not in Kansas anymore.”

Beyond immediate political disruptions, the panel identified several structural challenges facing the global economy. These include the need to address high government debt levels, ensure that technological advancements like artificial intelligence don’t exacerbate inequality, and prevent disruptions to labor markets.

For Europe specifically, Lagarde emphasized the importance of boosting productivity and creating a more favorable environment for business investment to maintain competitiveness in the global marketplace.

The discussion highlighted a pragmatic approach to navigating geopolitical tensions. While acknowledging that the landscape of global trade and cooperation has fundamentally changed, the economic leaders emphasized that international interdependence remains a reality that will continue to shape policy decisions and business strategies.

As the forum concluded, their message emphasized looking beyond short-term political drama to focus on sustainable economic solutions that can address mounting debt concerns and ensure technological progress benefits society broadly rather than widening existing inequalities.