Globalisation, though not dead, is fading: ‘glocalisation’ is becoming the new mantra | Larry Elliott

Industrial policy such as a green growth plan is no longer a dirty word as nations realise shorter supply chains and a strategic state role are necessary

Not bad. But not great either. That summed up the mood as the World Economic Forum ended in Davos last Friday with a panel on the state of the global economy. Not bad because most countries outperformed expectations of a year ago. Not bad because sharply rising interest rates didn't plunge the US, the eurozone and the UK into recession. Not bad because the war between Israel and Hamas has failed to send oil prices shooting above $100 a barrel.

Not great because central banks face a balancing act between cutting interest rates too quickly and reigniting inflation, and keeping them too high and plunging their economies into recession. Not great, because the early weeks of 2024 have led to a wider Middle East conflict, with implications for one of the world's main trade routes. And not great because - as Davos showed - the global economy is deeply fractured.