The Physical Economy Is Back | World Economic Forum Annual Meeting 2026

The panel explores the performance of real assets and the physical economy in a digital world, particularly in light of the pandemic and subsequent inflation. A key theme is the divergence in real estate performance across different regions, with the Middle East experiencing rapid recovery and growth, contrasting with challenges in the US and Europe. Data centers and residential properties are identified as standout subsets with upside potential, while regulatory environments and infrastructure limitations are critical factors influencing investment decisions. The discussion also covers the impact of AI on data center demand, the importance of sustainable energy solutions, and the need for government and corporate partnerships to foster growth and innovation in the physical economy.