At Davos, leaders from the ECB, IMF and WTO said the global economy has shown unexpected resilience but warned that high government debt and pervasive inequality threaten future stability. Separately, U.S. diplomacy continued with Army Secretary Dan Driscoll joining Russia-Ukraine talks. Other major headlines include UK demands for an apology over Afghanistan comments, a DOJ-backed GOP appeal over a California map, additions to the U.S. 'major non-NATO allies' list, disputed claims about executions in Iran, and the U.S. finalizing its withdrawal from the WHO.
Davos: Global Economy Shows Resilience, But Debt and Inequality Pose Big Risks
President Donald Trump walks down the stairs of Air Force One upon his arrival at Joint Base Andrews, Md., Thursday, Jan. 22, 2026, after returning from the World Economic Forum in Davos.(AP Photo/Luis M. Alvarez)(ASSOCIATED PRESS)
At the World Economic Forum in Davos, global leaders urged governments and businesses to tune out political distractions and focus on policies that boost growth and reduce inequality.
European Central Bank President Christine Lagarde, IMF Managing Director Kristalina Georgieva and WTO Director-General Ngozi Okonjo-Iweala said the world economy is displaying unexpected resilience despite a noisy geopolitical backdrop. They cautioned, however, that elevated government debt in some countries and persistent inequality are meaningful risks to longer-term stability.
Army Secretary Joins Russia-Ukraine Negotiations
Army Secretary Dan Driscoll was named to the U.S. delegation for three-way talks in the United Arab Emirates aimed at advancing negotiations to end the Russia-Ukraine war, according to a U.S. official who spoke on condition of anonymity. Special envoy Steve Witkoff invited Driscoll because of his operational experience and prior leadership in uniform. Driscoll previously participated in similar discussions last November, meeting Ukraine's president and joining follow-up talks in Geneva and Abu Dhabi.
UK Leader Demands Apology Over Afghanistan Remarks
British Prime Minister Keir Starmer demanded an apology after former President Donald Trump suggested that NATO troops other than Americans stayed away from frontline combat in Afghanistan. Starmer called the remarks "insulting and frankly appalling," noting more than 150,000 British service members deployed after the 2001 invasion and that over 450 British troops died.
Justice Department Joins GOP Appeal Over California Map
The U.S. Department of Justice joined Republicans in asking the Supreme Court to block a new California congressional map they say favors Democrats. Trump’s top Supreme Court lawyer argued the map was "tainted by an unconstitutional racial gerrymander." The court has already allowed Texas to use a disputed new map while it reviews challenges; a Sacramento federal court recently rejected claims that California’s districts impermissibly favored Hispanic voters.
Peru and Saudi Arabia Named Major Non-NATO Allies
Peru and Saudi Arabia were formally added to the U.S. roster of "major non-NATO allies" following publication in the Federal Register. The designation extends certain arms-sale privileges and other cooperation benefits. With their addition there are now 22 such partners across four continents.
Iran Denies Claims About Halted Executions
Iran's top prosecutor dismissed claims that Tehran had halted the executions of 800 detained protesters as "completely false." Human-rights activists say security forces' actions during recent unrest have killed thousands, though an extended internet blackout has hindered independent verification. Tensions with the U.S. remain high as an American aircraft carrier group has moved closer to the region.
Trump Criticized For Comments On NATO Involvement
In separate remarks at Davos, Trump said he was not sure NATO would back the U.S. if called upon and suggested some allied forces "stayed a little back, a little off the front lines" in Afghanistan. The comments drew condemnation in the U.K., where officials said allied troops should be remembered for their service and sacrifice.
U.S. Finalizes Withdrawal From World Health Organization
The United States has completed its withdrawal from the World Health Organization, officials announced. The move follows a decision announced previously and comes amid unresolved financial obligations—more than $130 million reportedly remain unpaid—and concerns about how the exit will affect U.S. participation in WHO committees and global disease surveillance. Public-health experts warn the split could impede international outbreak responses and complicate vaccine cooperation.
Note: This article synthesizes multiple headlines from Davos and associated developments in U.S. foreign policy and international affairs. All facts are reported as described by the originating sources.
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