The world is finding an uneasy equilibrium with a more benign economic backdrop overshadowed by a panoply of geopolitical risks, according to the final Davos panel of 2024.

The prospects of subsiding inflation and a pickup in global trade offer some encouragement for investors despite the backdrop of war and populism, European Central Bank chief Christine Lagarde and peers agreed as the World Economic Forum drew to a close.

“Normalization — that’s what we have begun to see,” she told the audience in the Swiss resort town, before adding an important qualifier. “It is not normality that we’re heading to,” she added.

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