U.S. President Donald Trump on Wednesday declared the United States the “economic engine of the planet” while addressing global business leaders at the 2026 World Economic Forum (WEF) in Davos, Switzerland.
Trump’s address came a day after marking the first anniversary of his return to the White House. He arrived in Davos amid rising tensions with European allies over his renewed push for U.S. control of Greenland.
Speaking before global CEOs, the U.S. president said the American economy had experienced a dramatic turnaround within one year of his administration.
“I come to this year’s World Economic Forum with very phenomenal greetings from America,” Trump said. “After one year back at the White House, our economy is booming, productivity is surging, investment is soaring, and incomes are rising. Inflation is being defeated, and our previously open border is now closed and impenetrable.”
He described the current economic performance as the fastest and most dramatic recovery in U.S. history, contrasting it with what he called economic stagnation under the previous administration.
“Under the Biden administration, the economy was plagued by stagflation — low growth and high inflation — a recipe for misery and failure,” Trump said. “But after just one year of my policies, we are seeing the exact opposite: no inflation and extraordinarily high growth.”
According to Trump, core inflation over the past three months stood at about 1.6 percent, while fourth-quarter economic growth is projected at 4.6 percent — figures he said exceeded expectations.
“In the next four years, we have secured nothing less than $18 trillion in investments, and when the final numbers are in, it will be close to $20 trillion,” he added. “The U.S. economy is on pace to grow at nearly double the rate projected by the IMF.”
Trump emphasized that global economic stability remains closely tied to U.S. performance. “When America booms, the world booms. When we go down, the world goes down with us,” he said.
He also took aim at Europe’s economic direction, expressing concern over what he described as declining standards in parts of the continent.
“I love Europe, and I want to see Europe do well,” Trump said. “But it is not heading in the right direction. Some places are barely recognisable anymore.”
Tension Over Greenland Intensifies
Trump’s appearance in Davos followed renewed controversy over his insistence that Greenland is strategically vital to U.S. and NATO security, particularly as Arctic ice melts and geopolitical competition with Russia and China intensifies.
Although Trump ruled out the use of force, he has repeatedly called for immediate negotiations on U.S. acquisition of the mineral-rich island, an autonomous territory of Denmark.
The issue has sparked sharp reactions across Europe. NATO Secretary-General Mark Rutte said diplomacy was needed to manage the growing dispute, warning that the situation was creating serious strain within the alliance.
“There are tensions at the moment, there’s no doubt,” Rutte said, stressing the need for calm engagement among allies.
France has proposed a NATO military exercise in Greenland, with President Emmanuel Macron warning against attempts to “subordinate Europe” and criticizing threats of trade tariffs linked to the Greenland dispute.
Trump has threatened tariffs of up to 25 percent on several European countries backing Denmark, prompting Europe to warn of countermeasures.
US Actions ‘Unusual for an Ally’ — Lagarde
European Central Bank President Christine Lagarde also weighed in on the controversy, describing Washington’s actions as unusual for a long-standing ally.
“When you are allies under the North Atlantic Treaty and have shared decades of cooperation, threatening to seize territory that is clearly not for sale and imposing trade restrictions is not behaving like an ally,” Lagarde said in Davos.
She noted that the Greenland dispute has opened one of the deepest rifts between the United States and Europe in decades, raising questions about the future of transatlantic relations.
US Is the ‘Economic Engine of the Planet,’ Trump Tells Global CEOs at Davos
