Economy, geopolitics and AI – that was the World Economic Forum in Davos

Last week, as every year, leading politicians and economic experts from all over the world met at the World Economic Forum in Davos, Switzerland, to discuss solution strategies for global problems. Hundreds of economists, business leaders and top politicians gathered in the Alpine village to discuss the key topics of the global economy, trade and artificial intelligence under this year’s motto “In the spirit of dialog”.

However, this year’s forum was dominated by the Greenland dispute and the appearance of US President Donald Trump. He had initially called for “immediate negotiations on the takeover of Greenland” and threatened punitive tariffs, but did an about-turn shortly afterwards. According to Trump, he had secured unrestricted US access to Greenland in a NATO agreement. The threat of punitive tariffs was also withdrawn.

Macron warns against imperial ambitions

But apart from Trump, there were also numerous prominent participants with contributions on geopolitics and the global economy. In Davos, French President Emmanuel Macron warned of a global shift away from norms and international law. The world is experiencing a “shift towards a world without rules, in which international law is being trampled underfoot and in which the only law that seems to count is that of the strongest”. So-called “imperial ambitions” are returning.

Macron described the “endless accumulation of new tariffs” as “fundamentally unacceptable, all the more so when they are used as a means of pressure against territorial sovereignty”. Macron also warned against “merciless competition” on the part of the USA, which aims to “weaken and subordinate Europe”.

French President Emmanuel Macron during his speech at the World Economic Forum. (c) APA-Imaces / AFP / LUDOVIC MARIN

In Davos, EU Commission President Ursula von der Leyen warned Trump against plunging transatlantic relations into a downward spiral because of Greenland. At the same time, she stressed that Europe must accelerate its independence efforts at all levels – from security to the economy, from defense to democracy. “Because the world has changed permanently. We must change with it,” she said.

IMF chief calls for increased growth efforts

The head of the International Monetary Fund (IMF), Kristalina Georgiewa, called for increased global growth efforts at the World Economic Forum. Although the IMF has recently raised its forecast for global economic growth slightly, the expected growth is not sufficient.

It is important not to lean back in complacency: “Growth is not strong enough,” she emphasized at the forum. This also applies in view of the high level of debt in many countries, which is hanging around their necks like a millstone. Government debt worldwide is heading towards 100 percent of global GDP and at the same time economic growth is not strong enough: “We have a problem here,” said Georgieva. More attention must also be paid to those countries that are falling behind in the global economy.

According to the head of the IMF, the global economy must also prepare for further shocks. It is to be expected that there will be further shocks, including economic ones, said Georgieva in Davos. At the same time, she spoke out against excessive regulation. The IMF is against excessive regulation that stifles the willingness to take risks and private initiative.

IMF has recently raised economic forecasts

The IMF recently presented new economic forecasts , raising its estimate for global economic growth in the current year from 3.1% to 3.3%. For 2027, the IMF is forecasting growth of 3.2%. In a long-term comparison, the estimates are rather low. In addition to China and India , the IMF also sees the USA, where a lot of money is flowing into the development of artificial intelligence (AI) , as a growth driver . According to the IMF report, Germany no longer stands out negatively and is expected to grow by over one percent, which is likely to be primarily due to government stimulus for the economy.

The World Bank is forecasting economic growth of just 2.6 percent this year and 2.7 percent in 2027. At the same time, the organization recently warned that overall growth is too weak to combat extreme poverty and is too heavily concentrated in industrialized countries.

Elon Musk was one of the many prominent company bosses in Davos this year. At the forum, the tech billionaire held out the prospect that his electric car company Tesla could start selling humanoid robots by the end of 2027. His robots are already carrying out simple tasks in the production of electric cars. Musk expects the machines to be on sale to the public by the end of next year. In view of dwindling electric car sales, Musk has recently said several times that he sees the future of Tesla in robots and robot cabs.

 

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