• The Global Risks Report 2026 ranks geo-economic confrontation as the top near-term risk, amplified by the US-EU standoff over Greenland while NATO allies warn of alliance fracture and strategic gains for Russia and China in the Arctic
• Sessions highlighted AI’s “tsunami” labour-market impact affecting 40% of global jobs per IMF, and uneven diffusion between advanced and developing economies
• Discussions reflected retreating multilateralism, eroding trust, protectionism, unstable supply chains, energy security pressures from AI/EV/data-centre demand, and long-term climate/nature threats

Harare- The World Economic Forum’s Annual Meeting in Davos, Switzerland, opened on January 19 under the theme “A Spirit of Dialogue,” but proceedings have been overshadowed by escalating transatlantic tensions stemming from President Donald Trump’s demands to acquire Greenland and accompanying tariff threats. As of January 20 (Day 2), discussions among over 60 heads of state, business leaders, and policymakers have centred on fears that the dispute could fracture the rules-based international order and weaken NATO.

European leaders, including European Commission President Ursula von der Leyen and French President Emmanuel Macron, have strongly condemned the tariff threats, 10% starting February 1 and rising to 25% on goods from eight European nations as a “mistake” and an act of economic coercion.

Von der Leyen questioned the trustworthiness of recent US commitments not to escalate tariffs, while Macron described the situation as a slide toward “new imperialism or new colonialism” and emphasized that respect for Greenland’s sovereignty is non-negotiable. He signaled Europe’s willingness to deploy its Anti-Coercion Instrument for the first time against the United States, potentially triggering retaliatory tariffs, procurement restrictions, and digital taxes.

NATO allies, including Lithuania’s president, warned that a rupture could effectively “end NATO,” benefiting Russia and China strategically in the Arctic. These statements have intensified diplomatic pressure on Trump, who is scheduled to address the issue later in the week, with backchannel efforts underway including proposed G7 meetings and private outreach.

The standoff has amplified concerns outlined in the World Economic Forum’s Global Risks Report 2026, released just before the meeting, which ranks geoeconomic confrontation as the top risk most likely to trigger a global crisis in 2026 and over the two-year horizon.

Respondents highlighted rising protectionism, unstable supply chains, declining trust, and a shift toward multipolar fragmentation where cooperation yields to competition. Misinformation and disinformation ranked second, while adverse outcomes of artificial intelligence climbed sharply to fifth on the 10-year horizon, reflecting fears of labor market disruptions, societal polarization, and weaponization of frontier technologies like quantum computing. 

Technology sessions dominated Day 2, with IMF Managing Director Kristalina Georgieva describing AI’s impact on global jobs as a “tsunami,” affecting 40% of roles worldwide but with uneven diffusion, 60% in advanced economies versus far lower rates in developing countries.

Leaders from Microsoft, Google, Salesforce, Google DeepMind, and Anthropic debated governance needs, energy infrastructure demands from AI data centers, data quality challenges, and the importance of human-centric development. Implications for global supply chains are profound: prolonged US-EU tensions could exacerbate fragmentation, raise costs for semiconductors and cloud services, and slow AI adoption in emerging markets while accelerating regional “splinternet” effects. 

Canadian Prime Minister Mark Carney captured the mood by declaring that the rules-based system “no longer works” and warning that a world of economic “fortresses” would be poorer, more fragile, and less sustainable.

Chinese Vice-Premier He Lifeng echoed this, stating that “tariffs and trade wars have no winners” and urging wider market access and cooperation. Energy security discussions reflected multiplying risks elevated to national security levels, driven by surging electricity demand from AI, electric vehicles, and data centers, pushing calls for diversified renewables, natural gas, and nuclear sources.

For emerging economies, the implications of these Davos debates are significant. Heightened geoeconomic confrontation risks inflating prices for critical imported technologies and hardware, potentially stalling digital transformation initiatives across Africa. In Zimbabwe, reliance on affordable semiconductors, cloud computing, and AI tools for the Smart Zimbabwe 2030 plan could face delays and cost overruns amid supply chain volatility and possible export controls.

However, Europe’s push for strategic autonomy in critical minerals seeking alternatives to Greenland and Chinese dominance could open investment opportunities in Zimbabwe’s substantial lithium reserves, fostering mining partnerships, local processing, technology transfer, and job creation that align with Vision 2030 goals.

Climate and nature risks also featured prominently, with experts warning of trillions in potential losses from warming and emphasizing that over half of global GDP depends on healthy ecosystems. Calls for regenerative investment and a “Blue Davos” focus on freshwater and oceans signal growing recognition that economic security must incorporate planetary boundaries.

As the February 1 tariff deadline looms, Davos has served as a critical venue for testing whether dialogue can avert escalation. While European markets opened lower and uncertainty persists, some US officials urged partners to “take a deep breath,” claiming relations remain strong despite disagreements.

The prevailing atmosphere shows a broader shift: multilateralism is retreating, trust is eroding, and great-power competition increasingly overrides shared global challenges. Whether this gathering yields meaningful de-escalation or merely highlights divisions will shape not only transatlantic ties but the resilience of global trade, technology innovation, and economic prospects for vulnerable regions in the year ahead.

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