World Facing 'Most Complex' Situation In Decades: WEF
The world is facing the "most complex" geopolitical situation seen in decades, the head of the World Economic Forum (WEF) told AFP Tuesday, warning that turmoil was "impacting global growth".
"It is the most complex geopolitical and geo-economic backdrop we've seen in decades," WEF President and CEO Borge Brende said ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin.
"If we are not able to revive growth again, we can unfortunately see a decade of lower growth," he warned.
Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin -- known colloquially as the "Summer Davos".
The meeting comes hard on the heels of the United States' involvement in the Iran-Israel conflict and follows months in which the global economy has been battered by a tariff war launched by US President Donald Trump.
This month, the World Bank cut its forecast for global growth this year from 2.7 percent to 2.3 percent, following a similar reduction by the International Monetary Fund.
Brende told AFP it was still too soon to predict the impact of Trump's swingeing tariffs.
It is "too early to say what these tariffs will end with because the negotiations are still ongoing", he said.
"I think the jury is still out, but the traditional globalisation we saw is now changed into a different system," he said.
"That is a new chapter... especially since trade was the engine of growth."
Brende also warned mounting conflict could have a "very negative impact" on global growth.
The WEF gathering in Tianjin comes at an uncertain juncture for the Chinese economy, which has struggled under a years-long property sector crisis and sluggish domestic spending.
"China really does matter," Brende said, adding he expects the country to account for almost 30 percent of global growth this year.
"China is pivoting its economy more towards digital trade, towards services and also now opening up for increasing domestic consumption -- something that is important," Brende said.
Officials in Beijing have since late last year unveiled a string of aggressive measures including key rate cuts and cancellations of home purchasing restrictions.
But many economists remain sceptical that the Chinese economy can achieve the government's official growth target for this year of around five percent.
With the tumultuous trade war threatening shipments from the manufacturing powerhouse, Beijing is looking to emerging technologies such as artificial intelligence as potential sources of future growth.
"In the past, trade was the driver of growth, but you cannot exclude that new technologies including AI can... maybe replace the important role that trade had", Brende told AFP.
While trade will remain "very important", he said, disruptive technologies can provide the productivity boost needed to "avoid a decade of sluggish growth".
Attendees bustled around a cavernous conference hall in Tianjin on Tuesday ahead of talks with a lineup of speakers that includes former UK Prime Minister Tony Blair.
Chinese Premier Li Qiang is expected to deliver a keynote speech on Wednesday. Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin -- known colloquially as the "Summer Davos" AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
DW
an hour ago
- DW
Germany updates: Merz addresses lawmakers before NATO summit – DW – 06/24/2025
Ahead of NATO summit, German Chancellor Merz is due address parliament on Germany's role in Israel-Iran war and Ukraine. Watch and follow live with DW German Chancellor Friedrich Merz (CDU) is due to deliver a government statement in the Bundestag at noon (1000 GMT) on Tuesday regarding the wars in Ukraine and the Middle East, as well as NATO's 5% target. The address is scheduled to last 25 minutes, followed by a 90-minute debate. Germany's Cabinet approved on Tuesday the draft budget for 2025 and a framework for the following yearr, providing for record investments to boost growth. After the Cabinet meeting, the 2025 budget is set to be introduced in the Bundestag, Germany's lower house of parliament. The final approval is due this September. The plans for 2026 are due to be agreed in full by the Cabinet in late July before a vote in the Bundestag by the end of the year. Senior citizens and families are shoplifting more frequently as the value of items shoplifted in Germany continues to rise, according to a study by the the Cologne-based retail research institute EHI published on Tuesday. In 2024, customers stole goods to the tune of approximately €2.95 billion ($3.4 billion), a 4.6% hike when compared to 2023. The total loss has risen for the third time in a row and reached an all-time high. "There are more and more people who can no longer afford or want to buy certain products, partly as a protest against the prices," said study author Frank Horst. "Senior citizens and families are also shoplifting more and more frequently." Experts say the increase of self-service checkouts in Germany is correlated with the rise in shoplifting. More and more retailers, from supermarket giant Aldi to healthcare and cosmetics store chain dm, are adopting self-service checkout machines. EHI surveyed 98 companies with a total of 17,433 shops regarding their inventory discrepancies to get their findings. Around 3,900 ultra-wealthy people in Germany now own more than a quarter of the country's financial wealth, according to a new report from management consultancy Boston Consulting Group (BCG). The people with financial assets valued at more than $100 million (€86.17 million), now collectively have a total worth of just under $3 trillion. BCG estimates Germany's total gross wealth in 2024 at $22.9 trillion. Of this, $11.8 trillion is invested in real estate and other tangible assets, while $11.1 trillion consists of purely financial assets such as bank deposits, securities, pensions and cash. The ultra-wealthy own 27% of those financial assets. However, this is balanced against liabilities of $2.2 trillion, most of them loans. Germany now ranks third worldwide in the number of ultra-wealthy individuals, behind the United States, with 33,000 super-rich, and China, with 9,200, the BCG found. The management consultancy is headquartered in the US with offices in more than 50 countries. Finance Minister Lars Klingbeil's draft budget has several record figures, including in terms of defense spending and government borrowing. The defense budget is set to more than double by 2029, rising to €152.8 billion (roughly $177 billion). This means defense spending is due to rise to 3.5%, amid Germany's growing security fears since Russia's 2022 full-scale invasion of Ukraine as well as US President Donald Trump's growing pressure on Europe to up its defense spending. Net borrowing will also significantly increase, as per the draft budget. It is due to jump to €81.8 billion in 2025, up from €33.3 billion last year. It will continue to rise in the next four years; to €89.3 billion in 2026, €87.5 billion in 2027, €115.7 billion in 2028 and €126.1 billion in 2029. Those massive hikes are made possible by a law passed in March, easing Germany's so-called debt brake. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Germany has been operating with a provisional budget since the start of the year. Germany will boost defense spending to 3.5% of gross domestic product by 2029, Reuters said on Monday, aiming to send a strong signal with its 2025 budget ahead of this week's NATO summit in The Hague. Germany's total defense spending will go up from €95 billion in the draft budget for 2025 to €162 billion in the budget framework for 2029, according to Reuters. Germany will be able to borrow a total €378.1 billion for defense between 2025 and 2029 thanks to debt brake reform from March (see below). Germany's upper house of parliament in March passed a reform of the country's borrowing rules and a €500 billion ($542 billion) fund to revamp its infrastructure and revive Europe's largest economy. The constitutional amendment to loosen the so-called debt brake allows for de-facto unlimited spending on defense and security. Germany's draft budget includes net new debt of €82 billion, which will rise progressively to just over €126 billion in 2029, according to Bloomberg News. Before the March change, the German parliament suspended the debt brake in times like the COVID-19 pandemic and during Russia's invasion of Ukraine. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video German Finance Minister Lars Klingbeil is set to present the first draft of the 2025 budget. The budget this year was delayed because of national elections in February, and comes after Germany's parliament voted this March in favor of a major fiscal package that includes changes to debt policies to enable greater spending on defense as well as €500 billion ($580 billion) infrastructure fund. We'll bring you the latest news, including announcements from a press conference scheduled to take place at 10:45 a.m. (0845 GMT/UTC).
Int'l Business Times
5 hours ago
- Int'l Business Times
World Facing 'Most Complex' Situation In Decades: WEF
The world is facing the "most complex" geopolitical situation seen in decades, the head of the World Economic Forum (WEF) told AFP Tuesday, warning that turmoil was "impacting global growth". "It is the most complex geopolitical and geo-economic backdrop we've seen in decades," WEF President and CEO Borge Brende said ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin. "If we are not able to revive growth again, we can unfortunately see a decade of lower growth," he warned. Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin -- known colloquially as the "Summer Davos". The meeting comes hard on the heels of the United States' involvement in the Iran-Israel conflict and follows months in which the global economy has been battered by a tariff war launched by US President Donald Trump. This month, the World Bank cut its forecast for global growth this year from 2.7 percent to 2.3 percent, following a similar reduction by the International Monetary Fund. Brende told AFP it was still too soon to predict the impact of Trump's swingeing tariffs. It is "too early to say what these tariffs will end with because the negotiations are still ongoing", he said. "I think the jury is still out, but the traditional globalisation we saw is now changed into a different system," he said. "That is a new chapter... especially since trade was the engine of growth." Brende also warned mounting conflict could have a "very negative impact" on global growth. The WEF gathering in Tianjin comes at an uncertain juncture for the Chinese economy, which has struggled under a years-long property sector crisis and sluggish domestic spending. "China really does matter," Brende said, adding he expects the country to account for almost 30 percent of global growth this year. "China is pivoting its economy more towards digital trade, towards services and also now opening up for increasing domestic consumption -- something that is important," Brende said. Officials in Beijing have since late last year unveiled a string of aggressive measures including key rate cuts and cancellations of home purchasing restrictions. But many economists remain sceptical that the Chinese economy can achieve the government's official growth target for this year of around five percent. With the tumultuous trade war threatening shipments from the manufacturing powerhouse, Beijing is looking to emerging technologies such as artificial intelligence as potential sources of future growth. "In the past, trade was the driver of growth, but you cannot exclude that new technologies including AI can... maybe replace the important role that trade had", Brende told AFP. While trade will remain "very important", he said, disruptive technologies can provide the productivity boost needed to "avoid a decade of sluggish growth". Attendees bustled around a cavernous conference hall in Tianjin on Tuesday ahead of talks with a lineup of speakers that includes former UK Prime Minister Tony Blair. Chinese Premier Li Qiang is expected to deliver a keynote speech on Wednesday. Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin -- known colloquially as the "Summer Davos" AFP
Int'l Business Times
8 hours ago
- Int'l Business Times
Russian Drone Attacks Kill Three In Northeast Ukraine
Russian drone attacks killed three people in Ukraine's northeastern region of Sumy, including a child, local authorities said on Tuesday. It came a day after Ukraine said Russia carried out dozens of drone and missile strikes on its territory, killing 10 people in the capital Kyiv. Diplomatic efforts to end the three-year war have stalled, with the last direct meeting between Kyiv and Moscow almost three weeks ago and no follow-up talks scheduled. "We have information about three dead. Among them is an eight-year-old boy," said Oleg Grygorov, head of the Sumy region's military administration. The boy's body was pulled from the rubble of a destroyed house, he added. "The strike took the lives of people from different families. They all lived on the same street. They went to sleep in their homes but the Russian drones interrupted their sleep -- forever." Three people were wounded in the attack and have been hospitalised, with one in "serious condition", Grygorov added. Russian drone strikes were also reported in Kharkiv, where three people were wounded, the city's mayor said on Telegram. Russia said a drone had targeted a residential building in Moscow overnight Monday, wounding two people, including a pregnant woman. "About 100 people were evacuated from the building, including 30 children," according to the region's governor, Andrei Vorobyov, who added that two more drones were shot down. Russia had fired dozens of drones and missiles at Ukraine a day earlier, ripping open a housing block in Kyiv, killing 10 civilians and burying others beneath the rubble. Separate Russian attacks on Monday in the southern Odesa region left two people dead and another dozen wounded, local authorities said. Ukraine President Volodymyr Zelensky said a school was hit. "Sadly, some people may still be trapped under the rubble," he added. Zelensky met British Prime Minister Keir Starmer during a surprise visit to London on Monday. Zelensky is due to attend a two-day NATO summit in The Hague starting on Tuesday. Russia occupies around a fifth of Ukraine and claims to have annexed four Ukrainian regions as its own since launching its invasion in 2022 -- in addition to Crimea, which it captured in 2014. Kyiv has accused Moscow of deliberately sabotaging a peace deal in order to prolong its full-scale offensive and to seize more territory. Ukrainian rescuers conduct a search operation in a residential building, heavily damaged following a strike in Kyiv on June 23, 2025, amid the Russian invasion of Ukraine AFP Ukrainian rescuers work at the bottom of a residential building, heavily damaged following a strike in Kyiv on June 23, 2025, amid the Russian invasion of Ukraine AFP Britain's Prime Minister Keir Starmer (L) shakes hands with Ukraine's President Volodymyr Zelensky at 10 Downing Street, central London, on June 23, 2025 AFP
