Davos 2026: Tariffs, Turmoil, And The Slow Erosion Of Growth - Gita Gopinath Explains

At Davos 2026, Harvard Professor and former IMF Chief Economist Gita Gopinath offered a sober assessment of the global economy, warning that recent resilience may be masking deeper structural risks. While IMF growth projections have largely held so far, she cautioned that policy uncertainty, tariffs, and geopolitical shifts are slowly eroding economic potential -often without immediate impact on headline GDP numbers. Drawing parallels with Brexit, Gopinath explained how damage to investment and living standards can emerge gradually. She also noted that AI-driven investment, stock market wealth effects, and fiscal stimulus have temporarily offset tariff headwinds. Her message: today’s growth may reflect powerful tailwinds, but underlying pressures remain - and cracks could emerge over time.