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Why Attendees Left Davos Feeling Optimistic About the Economy

Why Attendees Left Davos Feeling Optimistic About the Economy
From TIME - February 4, 2018

Ive been attending the World Economic Forum in Davos for more than two decades, and I cant recall another time when the meeting ended with attendees who were so optimistic about the economic outlook. Their reasons:

The global economy is enjoying unusual synchronicity, with every major region expanding at the same time. With unemployment low and inflation dormant, we face the possibility of several years of high pressure growth, in which wages and other rewards to workers will rise, after a decade of anemia. The unusual bonuses paid by some companies to workers in the wake of the U.S. tax bill are partly an acknowledgment of that trend.

Trumps hard-line America first trade agenda was retrofitted at Davos into a more reasonable America first, but not America alone. It remains to be seen what that means in practice, but the cooler rhetoric has reduced fears of a trade fiasco.

The rapid advance of technologyand, in particular, the increasing ability to take proliferating pools of digital data and turn them into useful intelligencecarries the promise of a sea change in business productivity as well as potential solutions to a host of difficult social problems. U.K. Chancellor of the Exchequer Philip Hammond said AI could double economic growth rates in advanced economies by 2035.

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