Capturing growth in a fragmented world
Summary
McKinsey's "Five Fifty" briefing, "Capturing growth in a fragmented world," highlights strategies for CEOs to thrive amidst increasing geopolitical instability. Surveyed executives identified geopolitical risks as their primary economic concern in the first quarter of 2026. The briefing notes that AI investments are significantly reshaping global trade, evidenced by a surge in AI-related goods trade in 2025, even as geopolitical tensions and trade restrictions intensified. To navigate these dynamics, the report emphasizes boosting organizational agility for rapid risk response, enabling companies to adapt quickly and seize growth opportunities. It also outlines five key actions for CEOs to anticipate shifts and reallocate capital, alongside building geopolitical resilience through robust internal risk management and expanded external networks.
Key takeaway
For CEOs navigating a volatile global economy, you must prioritize organizational agility to respond swiftly to geopolitical shifts. Focus on strategic capital reallocation based on anticipated changes and strengthen your internal risk management frameworks. Additionally, broaden your external networks to supplement in-house expertise, ensuring your company can both defend against risks and proactively capture emerging growth opportunities in a fragmented world.
Key insights
CEOs must combine agility and strategic investment to navigate geopolitical fragmentation and capture growth.
Principles
- Geopolitical risk is a top economic concern.
- AI investments are reshaping global trade.
- Agility enables rapid adaptation.
Method
CEOs should implement five actions to anticipate geopolitical shifts and reallocate capital, alongside strengthening internal risk management and external networks.
In practice
- Prioritize organizational agility.
- Strengthen internal risk management.
- Broaden external expertise networks.
Topics
- Geopolitical Risk
- Global Trade Dynamics
- AI Investments
- Organizational Agility
- Capital Reallocation
- Risk Management
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Editorial summary, takeaway, and curation by AIssential. Original article published by McKinsey Insights & Publications.