Trump Tells Davos the U.S. Economy Is “Back in Full Force”

President Donald Trump used his address at the World Economic Forum in Davos on Wednesday to declare what he described as a dramatic economic turnaround during his first year back in office.

Speaking to global political and business leaders, Trump contrasted current conditions with those under the previous administration, saying the United States had moved from “stagflation” into a phase of “virtually no inflation and extraordinarily high economic growth.”

He pointed to recent data to support his claims, stating that core inflation over the past three months stood at 1.6%, while fourth-quarter economic growth is tracking at 5.4%. Trump also highlighted the performance of financial markets, saying U.S. equities have recorded 52 all-time highs since the election, adding roughly $9 trillion to retirement accounts and household savings.

The president said his administration has already attracted more than $1 trillion in new investment, which he contrasted with what he described as less than $1 trillion secured over the previous four years. He also noted that more than 1.2 million people have been removed from food assistance programs since January 2025, presenting this as evidence of improving employment conditions.

Trump emphasized his economic agenda, citing sweeping regulatory rollbacks, tax measures that allow businesses to expense investments in a single year, and the aggressive use of tariffs to address what he called “the largest trade deficit in world history” before his return to office. He said his administration has already concluded “historic trade deals” covering about 40% of total U.S. trade.

Describing the United States as “the economic engine on the planet,” Trump argued that when America grows, the global economy benefits.

He also took aim at Europe’s policy direction, criticizing energy strategies in particular. Trump said Germany now produces 22% less electricity than it did in 2017 and warned that Europe is “not heading in the right direction,” adding that he wants to see the continent prosper.

The speech reinforced Trump’s message that his economic model, built on deregulation, tariffs, and domestic investment, is reshaping both the U.S. economy and its role in the global system.