The Year Ahead 2026: A look at the political economy

Uncertainty but also opportunity. This was the key message from The Economist’s deputy editor, Tom Standage, regarding the political economy and its expected impacts in 2026.

Speaking at the Year Ahead event held on 8 January, Standage underlined how geopolitical and technological uncertainty will continue to play out in 2026.

Standage believes the unpredictability of US President Donald Trump will persist, causing fluctuations in confidence in global markets and in businesses of all sizes.

Since Standage sat for the interview, Trump has ramped up his threats to take over Greenland, threatening additional tariffs on European allies if they resist.

Meanwhile, the open question of AI’s impact on the global economy could cause further uncertainty, with a possible bubble burst in the near future.

On a more positive note, Standage believes there are opportunities for companies that learn how to use AI to their advantage. He also notes that countries are seeking trade diplomacy outside the US; for example, the EU signed a trade deal with South American nations over the weekend.

Watch the full interview below: