DAVOS, Switzerland (AP) – At the World Economic Forum in Davos, the world’s leading economic policymakers urged countries and businesses to remove the disruption from a week of conflict with the Trump administration and focus on boosting growth and fighting inequality in a world where trade continues to flow and international cooperation remains desperately needed.
of world economy European Central Bank President Christine Lagarde, International Monetary Fund President Kristalina Georgieva and World Trade Organization President Ngozi Okonjo-Iweala said on a panel that despite the noise, it was showing unexpected resilience. But while growth is sustained, problems such as alarming levels of government debt and inequality loom.
Its resilience has remained despite disruptions such as; US trade policy Under President Donald Trump, he threatened to impose tariffs on countries that opposed the proposed U.S. takeover and supported Greenland, sparking a tumultuous week-long forum, but later withdrew the tariff proposal.
What they need now is to boost growth to offset high debt levels around the world, artificial intelligence Don’t exacerbate inequality or destroy labor markets. And Europe needs to increase productivity and improve the business environment for investment.
Georgieva said the IMF’s recently raised forecast for global growth of 3.3% this year was “beautiful but not enough… We must not become complacent.”
He said levels of growth were not enough to reduce the “debt hanging around our necks” and the government needed to take care of “those who are about to fall off the wagon”.
“We need to consider Plan B, or Plan B,” Lagarde said. “I think there’s been a lot of noise this week…and we need to distinguish between signal and noise…we need to talk about alternatives.”
Responding to the “Europe-bashing” he heard during the summit, he said, “We should thank the bashers,” who emphasized the need to improve Europe’s investment environment and promote innovation.
Lagarde downplayed Canadian Prime Minister Mark Carney’s provocative speech at the forum, calling Trump’s approach unwarranted. “rupture” He emphasized an international order based on rules, trade and cooperation, and said there was “no going back” to that way of doing business. “From an economic and business standpoint, we depend on each other,” she said.
Okonji-Owelle noted that 72% of world trade still operates under WTO rules, with countries agreeing to impose the same tariffs on all trading partners. This is despite “the biggest disruption in 80 years.”
“Resiliency is built into the system and it shows,” she said. “I don’t think I’ll ever go back to where I was,” she admitted.
Providing historical perspective, Georgieva said, “We have always traded and we will always trade. Trade is like rivers and water. You put an obstacle and the obstacle goes around it. Yes, it will be different, but there will always be a need for Dr. Ngozi to look over world trade.”
Georgieva also acknowledged that the situation has changed for the better. “How many of you have seen the movie ‘The Wizard of Oz’?…We are not Kansas anymore.”
