The head of the Davos Forum announced the record debt of the global economy

The total global debt has reached its highest level since 1945, and payments on it have become the largest budget item for some countries. Berge Brende, President of the World Economic Forum (WEF) in Davos, made such a statement on January 17, commenting on the key global risks for 2026.

"The most important structural economic problem is the total debt, the highest since 1945. Interest on debt is the largest budget item in some countries," he said in an interview with Le Temps newspaper.

According to Brende, the current geopolitical situation is the most difficult not only since the Cold War, but also since the end of World War II. He called the escalation of a major international conflict the main risk, however, he considers the probability of it low. Among other significant threats to the Brand, he singled out new pandemics and financial bubbles.

At the same time, the politician noted that, despite the difficult situation, the global economy is showing good results, and an uncontrolled escalation of conflicts or a new economic crisis has not yet occurred. Separately, the head of the Davos Forum touched upon the topic of the energy transition. He called renewable energy sources "freedom energies" because they are produced within countries, belong to their citizens, and are low-cost.

Brende expressed hope that the emerging new world order would not be marked by a return to the "law of the jungle," and called for ways to adapt to the new reality, where business and trade, he said, are like water that always finds its way.

The record price of gold indicates a fundamental shift in the global reserve system. What does this mean for an investor

On January 13, the World Bank raised its forecast for global economic growth to 2.6% in 2026 and 2.7% in 2027. Earlier in June 2025, expectations for 2026 were 2.4%, and for 2027 — 2.6%. According to the World Bank, global GDP grew by 2.7% in 2025 instead of the previously expected 2.3%. Global inflation is projected to fall to 2.6% in 2026 amid softening financing conditions and budget support in a number of major countries.

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