We asked leaders at Davos 2026, how can we unlock new sources of economic growth? Here’s what they said in World Economy News 01/02/2026 After a year of shocks to geopolitical, trade and diplomatic norms, the most shocking thing of all may be the fact that the world economy has remained so steady in the face of such turmoil. “Why is it that, despite all the uncertainty and all the turbulence, the world is performing so well?” asked International Monetary Fund (IMF) Managing Director Kristalina Georgieva during the Dilemmas around Growth session at Davos 2026. “Looking under the hood, we see four remarkable factors. “One, the incredible agility and adaptability of the private sector. Two, the trade tensions we’ve experienced proved to be a lesser menace. We expected a big German Shepherd to bark, it turned out to be a sweet little poodle. Countries, especially in neighbourhoods, are strengthening their trade links. Tech-related trade has gone up. “The third reason, enthusiasm about AI. Four, central banks and fiscal authorities have done a pretty decent job … supporting the economy when it needs support, trying to pull back when it is necessary to consolidate.” Yet delving even deeper under the hood of the world economy reveals that while the engine is still running, certain parts of it are potentially being overworked. Kristalina Georgieva: We expected a big German Shepherd to bark, it turned out to be a sweet little poodle These were the key economics takeaways from Davos 2026: Thinking smartly about AI AI’s promised productivity boom could inject fuel into global GDP, speakers in the Global Economic Outlook session agreed, and signs of advances are already materializing in many sectors. “From a trade perspective, the work we’ve done shows AI could be very beneficial,” said World Trade Organization Director-General Ngozi Okonjo-Iweala, citing reductions in trading costs, improvements in the way logistics are managed and a productivity bounce. AI is also changing the nature of goods traded around the world, she said, with a shift towards technology-powered services. However, the potential AI offers comes with a clear warning. “We forecast that AI would increase trade by 40% by 2040,” Okonjo-Iweala added, “but only if adoption is relatively equal. If not, we are going to create more inequalities… We have a demographic problem in those parts of the world where the innovation and the boom is happening. We shouldn’t forget the rest of the world. Emerging markets and poorer parts of the world are the markets of the future.” Ngozi Okonjo-Iweala: Emerging markets and poorer parts of the world are the markets of the future Global Economic Outlook session with Albert Bourla, Chairman and CEO, Pfizer, USA; Andrew R. Sorkin, Editor-at-Large; Columnist, New York Times, USA; Christine Lagarde, President of the European Central Bank, Frankfurt; Kristalina Georgieva, Managing Director, International Monetary Fund (IMF); Mohammed Al-Jadaan, Minister of Finance of Saudi Arabia; Ngozi Okonjo-Iweala, Director-General, World Trade Organization (WTO), Geneva Mohammed Al-Jadaan, Saudi Arabia’s Finance Minister, agreed: “We need to avoid underestimating the risks AI is going to bring, in terms of divergence of wealth. We need to ensure that AI Is diffused, and that the benefits go to as many people and as many small and medium-sized enterprises as possible. We need to be watchful.” For Christine Lagarde, President of the European Central Bank, questions aroun