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Klaus Schwab, the founder and chairman of the World Economic Forum (WEF), has officially resigned from his position at the organization he established more than half a century ago. The WEF, based in Geneva, confirmed the news on Monday.

The announcement followed earlier indications this month that the 87-year-old would be stepping down. In a statement released by the organization, Schwab said his departure would take effect immediately. 

“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” he remarked.

Schwab’s resignation was formally accepted during a board meeting held on April 20. Vice Chairman Peter Brabeck-Letmathe has been appointed interim chairman, but a search committee has been formed to identify a permanent replacement later in the year.

University lecturer turned global economic industry head

Born on March 30, 1938, in Ravensburg, Germany, Schwab built a distinguished academic record with studies at Swiss universities and Harvard in the United States. He holds doctorates in engineering and economics and more than a dozen honorary degrees. 

At the time he launched the WEF’s precursor, the European Management Forum, in 1971, Schwab was a relatively obscure professor at the University of Geneva.

Davos meetings, which began as a small business conference with fewer than 500 participants, grew into a major platform for global dialogue attended by economic leaders and presidents. 

Schwab expanded the annual event by inviting high-level politicians, executives, NGO leaders, trade unions, and figures from civil society. 

Over time, the WEF developed new regional summits and launched centers addressing global challenges such as climate change, cybersecurity, energy transition, and financial system resilience. 

The organization describes itself as an “impartial and not-for-profit platform” that facilitates collaboration and trust among stakeholders. For more than 50 years, Schwab led the forum through its stated mission of economically “improving the state of the world.”

Global finance leaders to convene in Washington

Schwab’s resignation comes at a time when global economic leaders are set to meet in Washington, DC, for the 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank. 

Finance ministers and central bankers from around the world are expected to attend the event, which is overshadowed by US President Donald Trump’s recent tariff actions.

Ahead of the meeting, IMF Managing Director Kristalina Georgieva lambasted Donald Trump’s policies, coining them as a threat to global trade stability.

Several developing countries, among them Jordan and Sri Lanka, have reportedly been hit hard by the tariffs, undoing the fixes they had made by participating in IMF-supported recovery programs. 

Syria is also expected to attend the Washington summit to gather international backing for the country’s reconstruction after years of civil conflict. President Ahmad Al Shara of Syria recently met with regional leaders in the UAE, Saudi Arabia, and Iraq to discuss rebuilding strategies.

The economic backdrop to these meetings is marked by uncertainty and lowered expectations. The IMF had previously forecast global GDP growth at 3.3% for 2025, with US economic output estimated to rise by 2.7%. However, the monetary fund is more than likely going to revise the outlook this week.

Last Thursday, Kristalina Georgieva confirmed that the IMF will publish an updated World Economic Outlook on April 22. The outlook is expected to show downward revisions to global and regional growth forecasts. 

“Our new growth projections will include notable markdowns, but not recession,” she said in a pre-meeting speech.

Even so, some US-based economists are predicting a higher likelihood of recession due to the cumulative effects of restrictive trade measures and changing immigration policies. 

“This means that I think we have a very high chance of recession,” Posen propounded, estimating the probability of a US slowdown at 65%.

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