The World Economic Forum’s 55th Annual Meeting of 2025 was held in Davos, Switzerland, with approximately 3000 participants from over 130 countries, including academicians, government leaders, CEOs, innovators and 60 heads of state and governments gathered to address key global and regional challenges. The theme of the 2025 meeting was “Collaboration for the Intelligent Age.”
The theme focuses on the need for swift adaptation and international cooperation for emerging technologies reshaping the world. At the summit, pressing global challenges like geopolitical tensions, climate change, economic inequality and technology disruptions were deeply pondered to emphasise pivotal priorities for navigating the challenges of a rapidly evolving global landscape. Analysing the discussions reveals key aspects that business leaders should concentrate on for sustainable growth and development.
Priority 1: There will be a significant policy shift in the world. The potential change towards prohibitive tariffs could increase. This might unearth global tension and fragmentation in trade and business. There is also a growing trend of economic scapegoating and prejudiced policies. The world will witness more economies adopting interventionist industrial policies, so there will be an inward focus that could divide global economic systems. Geopolitical uncertainties will amplify and create another layer of uncertainty.
The chief economists predict that there will be greater regionalisation of trade over the next three years. To address these challenges, leaders must collaborate across sectors and nations. The key insight is that leaders must build resilience and adaptability in the organisation and the economies to manage technological transformation, policy changes and global shifts.
Priority 2: According to the World Happiness Report, most young people globally now report lower happiness levels than their elders; this trend has been observed across multiple regions since 2006. This could be attributed to rising costs, job market instability, financial insecurity, rapid change, technological disruptions, work-life imbalances, stress and an anxious generation of young people. Poverty has been identified as one of the key economic factors affecting the health and well-being of employees.
The prevalence of depression among women was also highlighted. Anita Zaidi, President of the Gender Equality Division from the Bill & Melinda Gates Foundation, noted, "For every dollar you invest in women's health, there's a three-dollar return." Experts emphasised investing in women's health, highlighting its positive impact on societal prosperity and economic growth. Leaders need to understand the interconnectedness of employee well-being and work — environment aspects like gender equity, women empowerment and access to health care and education. Leaders must prioritise creating a supportive work environment with wellness programmes and flexible hours and increase awareness of the importance of mental health issues, work-life balance and workplace inclusion.
Priority 3: As the global landscape evolves, transformational breakthroughs, like generative artificial intelligence (GenAI), reshape organisations and tasks across all sectors. These technological advances are not to be viewed in isolation but converge with broader challenges, like economic volatility, geo-economic realignments, environmental challenges and evolving societal expectations.
The web of interconnectedness is defining the global labour market. According to the Future of Work report, 39 per cent of the current skills will be outdated or transformed within five years due to the pace of technological advancements. According to the Future of Work Survey, skill gaps are the most significant barrier to business transformation. Leaders must prioritise strategies that focus on reskilling and upskilling their workforce.
Priority 4: Climate change was central to all discussions at the Davos Summit 2025. 2024 has been the hottest year on record. Financial institutions will be key in mobilising funds to support the energy transition. Leaders must scale up ambition, governance, partnerships and capital to accelerate decarbonisation efforts. Leaders must seek innovative solutions and investments in clean technologies for sustainable business and safeguarding the planet.
Developments and advancements mark the global landscape of 2025, reshaping economies and redefining societies. Leaders urgently need to prioritise people-centric leadership and foster collaboration to address systemic distortions, build resilience and focus on innovation, sustainability and inclusivity to ensure long-term prosperity and sustainability.
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