World Economic Forum
February 10, 2026
India and the EU agree trade deal, Latin America’s innovation paradox and how technology can bank Africa’s informal economy – these are the stories covered in this issue of the World Economic Forum’s 3 Economic Trends newsletter, your guide to equitable growth, markets and economic policy in an ever-changing world.
This week, we’re shining a spotlight on stories from some of the world’s biggest regions. For our regional coverage from the World Economic Forum’s Annual Meeting in Davos, dive into the articles below:
- Latin America at Davos 2026: From building trust, to Venezuela and trade insights
- The Middle East and North Africa at Davos 2026: Growth and tech ambitions to the fore
- India at Davos 2026: Growth is no longer the question
- Asia Pacific at Davos 2026: How ‘ASEAN’ is managing the risks and opportunities of global turbulence
- Africa at Davos 2026: Young population provides a bright outlook
- North America at Davos 2026: Trump, Carney and a changing world
- Europe at Davos 2026: Higher stakes and an outward embrace
1. India-EU deal redraws global #trade
India and the European Union have agreed a free trade pact creating the world’s largest free trade zone, covering 2 billion people and nearly a quarter of global GDP.
India will cut tariffs on 96.6% of EU exports, while the EU will reduce tariffs on 99.5% of Indian goods, with projected annual duty savings of $4.7 billion and exports potentially doubling by 2032.
European carmakers stand to gain, with tariffs dropping from as much as 110% to 10% over five years, while Indian labour‑intensive sectors and services win improved market access and mobility.
The deal underscores what the Forum’s Global Cooperation Barometer found: a shift towards “flexible” cooperation as multilateralism weakens.
Read more about the deal in this article.
2. Breaking Latin America’s #innovation paradox
Latin America has managed to achieve macroeconomic stability but remains stuck at about 2.5% growth, the lowest of any region, leaving job creation and social progress lagging.
The World Bank Group’s Productivity Project highlights that growth hinges on technological adoption and “creative destruction”, echoing the 2025 Nobel Prize’s focus on innovation-driven growth, writes the World Bank’s Chief Economist for Latin America and the Caribbean, William Maloney.
Latin America’s “innovation paradox” is that firms underinvest in skills, R&D and managerial capabilities despite very high potential returns.
The region must pair market-friendly environments with frontier firms, entrepreneurial talent and stronger innovation institutions to escape the low-growth club, says Maloney.
Read the article in full here.
3. Banking #Africa’s invisible informal economy
Africa’s informal economy employs more than 80% of workers in some countries and drives up to a quarter of GDP, yet remains largely invisible to traditional AI-driven banking models.
Financial institutions are starting to treat alternative data – mobile interactions, micro-transactions, savings groups and mobility patterns – as core intelligence for credit decisions.
Digital platforms and fintech-bank partnerships are building usable “financial identities” and enabling unsecured microloans for informal traders, write Johnson Idesoh (Absa Group) and Drew Propson (World Economic Forum).
As more informal activity is captured digitally, Africa’s workers gain access to formal finance, making growth more inclusive and resilient.
Read more about how technology can help to bank Africa’s informal economy in the full article here.
Share your thoughts and experiences in the comments below. For more detailed analysis, follow the World Economic Forum. See you in the next issue for more updates on equitable #growth, #markets and #policy.
