Davos, Switzerland: At a moment when the global economy is pulled between fragmentation and interdependence, the 56th Annual Meeting of the World Economic Forum (WEF) offered a rare space for dialogue, reflection and recalibration. Bringing together nearly 3,000 leaders from 130 countries — including heads of state, CEOs, policymakers, economists and civil society figures — Davos 2026 underscored a central truth: the rules of the global economy are being rewritten in real time.
Trade emerged as one of the most dominant and contested themes of the meeting. From geopolitical tensions and industrial policy to artificial intelligence and critical minerals, discussions revealed not just short-term disruptions, but deep structural shifts shaping the future of global commerce.
A World Trading System Under Strain
Trade took centre stage as leaders confronted growing uncertainty in the global trading system. A striking example came even before the meeting began, when US President Donald Trump threatened tariffs against eight European countries over opposition to his proposal to acquire Greenland. Although the tariffs were later dropped following diplomatic engagement with NATO, the episode rattled markets and reinforced concerns that trade tools are increasingly being used for political and security objectives rather than purely economic ones.
Many experts in Davos agreed that such episodes are no longer anomalies. Instead, they reflect a broader transformation. “We are in the midst of a rupture, not a transition,” said Canadian Prime Minister Mark Carney, capturing the prevailing mood. Trade, speakers stressed, is not declining — but it is changing form.
Kristalina Georgieva, Managing Director of the International Monetary Fund, offered a more organic metaphor: trade, she said, is like water. “You put an obstacle, it goes around it.” Despite geopolitical friction, global trade has proven resilient, adapting through new routes, partners and agreements.
Geopolitics Accelerates, Not Slows, Deals
Ironically, geopolitical complexity is now accelerating trade negotiations rather than freezing them. The newly concluded EU–Mercosur agreement stood as a symbol of this shift, while European Commission President Ursula von der Leyen hinted at a potential landmark trade deal between the European Union and India.
For businesses, this new environment demands agility. A World Economic Forum report presented in Davos found that only 20% of companies currently have a geopolitical function reporting directly to leadership — a gap that could prove costly as trade rules become more politicised.
Industrial Policy Makes a Comeback
Another defining feature of Davos 2026 was the resurgence of industrial policy. Government interventions in the economy have surged, driven by concerns over economic security, employment, technological leadership and sustainability. Leaders acknowledged that while such policies may be necessary, they also risk distorting markets if poorly designed.
“Protection doesn’t mean protectionism,” said French President Emmanuel Macron, highlighting the delicate balance governments must strike. Businesses, participants agreed, must be involved in policy design to avoid unintended spillovers.
Diversification as the New Economic Doctrine
Across sessions, one word echoed repeatedly: diversification. In an era of shifting alliances and supply chain shocks, over-reliance on any single partner is increasingly viewed as a strategic vulnerability.
World Trade Organization Director-General Ngozi Okonjo-Iweala warned that managing dependencies is now a core economic priority. Echoing this sentiment, Indonesian President Prabowo Subianto argued that fair trade integration enhances, rather than undermines, national security.
Critical Minerals: The New Strategic Frontier
Just as oil shaped geopolitics in the 20th century, critical minerals are emerging as the strategic resources of the 21st. Copper, cobalt and other key materials essential for clean energy and digital technologies are fuelling a global scramble.
Yet cooperation is also taking shape. Leaders highlighted the Lobito Corridor — a transport route through Angola, the Democratic Republic of Congo and Zambia — as an example of how partnerships can strengthen supply chains while supporting development. The Forum announced expanded efforts on critical minerals dialogue, including collaboration with Saudi Arabia.
The Technology Trade Paradox
While trade politics grow more complex, technology offers powerful tools to reduce friction. Artificial intelligence, digital platforms and data-driven systems can lower costs, speed up processes and democratize access to global markets — especially for small and medium-sized enterprises.
This paradox — political fragmentation alongside technological integration — was the focus of the Forum’s newly launched report on TradeTech. If deployed responsibly, participants argued, technology could act as an equalizer rather than a divider.
Economic Sustainability in an Age of Uncertainty
Beyond trade, Davos 2026 wrestled with the broader question of economic sustainability. The Chief Economists’ Outlook noted that the global economy remains relatively resilient despite turbulence, but warned of risks from sovereign debt, asset bubbles and uneven technological adoption.
Artificial intelligence loomed large. “AI is a tsunami hitting the labour market,” said IMF’s Georgieva, cautioning that even well-prepared countries may struggle to adapt. Nvidia CEO Jensen Huang, however, urged developing economies to invest boldly in AI infrastructure, arguing that the technology could help close the global development gap rather than widen it.
Five Nobel laureates in economics reinforced a central message: sustainable growth is no longer just about expansion, but about resilience, inclusion and long-term investment in people and institutions.
Dialogue as an Economic Tool
Ultimately, the World Economic Forum exists not to resolve every crisis, but to create conditions for cooperation. “This is a moment of uncertainty, but also possibility; not a moment to retreat, but a moment to engage,” said WEF President Børge Brende.
As geopolitical tensions rise and economic rules evolve, Davos 2026 made one point clear: dialogue itself has become a form of economic infrastructure. In a fragmented world, sustained engagement may be the most valuable investment of all.