Global Economic Growth Impacted by Unprecedented Geopolitical Turmoil, Says World Economic Forum Chief
The world is currently grappling with the “most complex” geopolitical situation witnessed in decades, the head of the World Economic Forum (WEF) informed AFP on Tuesday. He warned that this escalating turmoil is “impacting global growth.”
“It is the most complex geopolitical and geo-economic backdrop we’ve seen in decades,” stated Borge Brende, President and CEO of the WEF, ahead of a multilateral forum meeting in the northern Chinese city of Tianjin.
Brende cautioned, “If we are not able to revive growth again, we can unfortunately see a decade of lower growth.”
Officials, including Singaporean Prime Minister Lawrence Wong, are expected to attend this week’s WEF meeting in the port city of Tianjin, colloquially known as the “Summer Davos.”
This gathering closely follows the United States’ involvement in the Iran-Israel conflict and occurs after months during which the global economy has been significantly affected by a tariff war initiated by US President Donald Trump.
Brende told AFP that it remains too early to accurately predict the full impact of Trump’s extensive tariffs.
“It is too early to say what these tariffs will end with because the negotiations are still ongoing,” he explained.
“I think the jury is still out, but the traditional globalization we saw is now changed into a different system,” he remarked. “That is a new chapter… especially since trade was the engine of growth.”
Brende further warned that increasing global conflict could have a “very negative impact” on worldwide economic growth.
