Cologny, January 17 (ANI): As world leaders prepare for the 2026 Annual Meeting of the World Economic Forum (WEF), leading economists and geopolitical thinkers are drawing attention to a series of complex paradoxes shaping the international landscape this year.
These contradictions, emerging at the intersection of geopolitics and the global economy, reflect growing tensions between competition and cooperation among major powers, according to experts consulted by the World Economic Forum. They note that global stability in 2026 will be defined less by clear trends and more by conflicting forces pulling in opposite directions.
Mark Leonard of the European Council on Foreign Relations highlights Europe’s paradoxical transformation from a peace project into a security-driven bloc. Traditionally built on liberalization and open markets, the European Union is now increasingly focused on de-risking, diversifying away from the United States and China, and deepening the single market.
Leonard notes that centrist politics across Europe is giving way to post-liberal populism, with the so-called new right gaining ground in countries such as France, Germany, and the United Kingdom. He says the future of Europe will depend on whether centrist leaders can develop a counter-narrative, a social base, and effective agendas and communication strategies to manage these tensions, which will shape not only the coming year but the decades ahead.
Another paradox concerns migration and labor markets. Rachel Glennerster of the Centre for Global Development points out that while many wealthy nations are tightening immigration policies, they increasingly depend on foreign workers to address skill shortages. She notes that the United States and the United Kingdom are restricting rules for foreign students despite education being a major export industry and a key driver of growth and talent attraction.
Glennerster also highlights that immigration enforcement in the United States is targeting construction sites even as the country faces a housing affordability crisis, with migrants accounting for a significant share of construction workers. She suggests that countries should pursue innovative solutions in 2026, including Global Skills Partnerships focused on green skills and health migration.
Demographic change is further complicating the global outlook. Walter Russell Mead, a senior fellow at the Hudson Institute, notes that longer life expectancies are reshaping political and economic power structures, allowing older generations to remain politically dominant for longer periods as younger generations become smaller in size.
From a broader geoeconomic perspective, Alexander Gabuev of the Carnegie Russia Eurasia Center explains that Western sanctions and export controls may weaken some adversaries while simultaneously strengthening their resilience by encouraging the development of alternative economic networks. He warns that these dynamics, combined with concerns over an overheated artificial intelligence sector, divisions within the West, shifts in US foreign policy, and China’s progress toward self-reliance, could accelerate the erosion of American economic dominance.
Jeromin Zettelmeyer, Director of the Brussels European and Global Economic Laboratory in Belgium, points to enduring tensions between Europe’s collective interests and the national priorities of individual member states, alongside growing pressure on Europe’s industrial model. He says how European Union policymakers address these contradictions in 2026 will be closely watched.
Experts also warn that global cooperation is becoming both more necessary and more elusive. As climate change, technology governance, and supply-chain vulnerabilities rise on the global agenda, the need for collective action is increasingly clear. However, geopolitical rivalries and inward-looking policies continue to undermine multilateral efforts.
WEF experts stress that navigating these economic, demographic, and geopolitical paradoxes will be central to how 2026 unfolds, shaping policies, alliances, and the global order for years to come.
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