Geeta Gopinath at Davos: 'Trumpian World Order' to Trigger High Volatility and Economic Uncertainty

On this Special Report from Davos, Harvard Professor and former IMF Deputy Managing Director Geeta Gopinath analyzes the 'Trumpian world order' and its disruptive impact on geoeconomics. Gopinath warns that 2026 will be a year of 'high levels of uncertainty and high levels of volatility' for global markets, including India. She notes that while India remains a fast-growing economy, US tariffs could 'knock off something about 0.7 percentage points from growth over a two-year period.' The discussion covers the sustainability of China's export-led model, the 'fragile' valuations in the AI sector despite its transformative potential, and the necessity for India to maintain macroeconomic stability through fiscal discipline. Gopinath also advocates for 'One Nation, One Election' to curb fiscal profligacy at the state level, urging the US administration to maintain alliances to ensure American economic benefit.