Davos 2026: Gita Gopinath Warns of Fragile Global Economy, Western Fractures

• Gita Gopinath highlights an unusually fragile global economy, marked by growing fractures within the Western alliance, not just between geopolitical blocs.
• She identifies the US and Europe turning against each other as the biggest global economic story of 2026, with Trump's agenda deepening uncertainty.
• Gopinath warns that a full-blown EU-US tariff confrontation would be far more damaging than current tensions, despite tariffs having a muted economic impact so far.
• Concerns are raised about political pressure on the US Federal Reserve, signaling a troubling threat to central bank independence.
• India is noted as the fastest-growing major economy, on track to be the third-largest by 2028, but faces challenges in job creation and reforms.

Why It Matters: The global economy faces unprecedented fragility due to Western fractures, tariff risks, and threats to central bank independence.