European Central Bank President says world economy facing new risks

European Central Bank President Christine Lagarde says that the world economy is facing new risks, despite some forecasts for global economic performance, especially in the Eurozone, being stronger than expected.

In an exclusive interview with China Global Television Network (CGTN) at the 2026 World Economic Forum, Lagarde said that geopolitics, artificial intelligence (AI) and climate change all pose significant risks to the global economy.

"I would say threat number one is the geopolitical fragmentation, is the undermined confidence that people have in the economy. The second challenge is the speed at which digitalization, particularly propelled by artificial intelligence, is transforming our economies in multiple dimensions and pretty much all sectors," said Lagarde.

"And I think the third dimension that we should not forget is the threat of climate change that we still have and that has been a little bit on the back burner recently, but which is pursuing its course and requires that we finance the transition in order to reduce the impact of climate change. In the back of all that, you have security concerns, whether they are military security issues, cybersecurity issues, which are rising to the fore on all fronts," she said.

Under the theme "A Spirit of Dialogue," the 2026 WEF meeting opened on Monday in Davos and will run through Friday. About 3,000 leaders and experts from around the world are gathering to discuss five pressing global challenges, including enhancing cooperation, unlocking new sources of growth and deploying innovation at scale and responsibly.

-China Global Television Network/Reuters