Davos 2026: Gita Gopinath Warns Of High Volatility In Global Markets

Speaking at Davos 2026, Harvard Professor and former IMF Chief Economist Gita Gopinath warned that the global economy is entering a phase of heightened uncertainty and volatility. With markets swinging sharply, currencies under pressure - including the rupee - and geopolitical tensions resurfacing, she said 2026 will likely see more turbulence than the previous year. While she had expected tariff pressures to peak, fresh political shocks and unexpected ruptures in U.S. - EU relations have added new risks. Gopinath cautioned that markets will continue to rise and fall sharply as uncertainty plays out, driven by trade tensions, inflation concerns, and global politics. Her message is clear: volatility is no longer episodic—it is becoming the new normal for economies worldwide.