Geoeconomic Confrontation at the Top
The World Economic Forum (WEF) has identified escalating economic clashes between major powers—through sanctions, tariffs, and trade restrictions—as the biggest threat to global stability this year. Released ahead of the WEF’s annual Davos meeting, the 2026 Global Risks Report surveyed more than 1,300 leaders from business, government, academia, and civil society. The findings show that geoeconomic tensions now outrank other major risks, including misinformation, societal polarisation, extreme weather, and armed conflict. Half of respondents expect a turbulent or stormy world over the next two years, a sharp rise from last year, and the outlook for the next decade points toward prolonged instability.
Economic Uncertainty and Market Volatility
The report highlights that geoeconomic confrontation is not only the most likely trigger for a crisis in 2026 but also the most severe near-term threat. Rising rivalries, trade restrictions, and tariffs threaten global supply chains, financial stability, and international cooperation. Economic risks—including potential downturns, inflation, mounting debt, and asset bubbles—have surged in the two-year outlook, signaling that markets may face increased volatility. The report cites recent U.S. trade policies and widespread tariffs as examples of actions that have disrupted global commerce and strained both businesses and consumers.
Technology, Society, and Environmental Pressures
While economic risks dominate short-term concerns, the report also flags significant long-term threats. Misinformation and cyber insecurity remain pressing, and AI-related risks are climbing rapidly due to potential societal, labor, and security impacts. Societal polarisation and inequality continue to challenge global cohesion. Environmental risks, meanwhile, are expected to be the most severe over the next decade, with extreme weather, biodiversity loss, and critical changes to Earth systems topping the list. WEF Managing Director Saadia Zahidi emphasized the need for global cooperation, noting that the report underscores both the scale of potential threats and our shared responsibility to address them before they spiral out of control.
