Can world leaders at Davos truly succeed in ‘reimagining growth’?

Leaders in government, business, academia and philanthropy convene in Davos, Switzerland, this week to sort out the world’s challenges, including the lofty ambition of “reimagining growth”. But what novel approaches could stimulate long-term, sustainable growth if government finances are strained and the wildly euphoric hopes for artificial intelligence prove to be limited?

The angst around Davos is understandable. Even though equity markets hit record levels and a much-feared recession was averted last year, the global economy has lumbered at an underwhelming pace. Prospects for expansion are worryingly weak, according to the International Monetary Fund.

Risks are tilting to the downside as China struggles with deflation, India becomes a quieter tiger and the United States implements disruptive policies. Meanwhile, Europe’s flagging economy confronts populist nationalism and leadership crises. Inflation has yet to be quelled as central banks keep rates higher for longer. Inequality between the Global North and South is accelerating, with developed nations holding more than two-thirds of global wealth.