Economic Conflicts Take Center Stage
Rising economic clashes between major powers, from tariffs to sanctions, are now seen as the biggest threat to global stability, according to the World Economic Forum’s (WEF) Global Risks Report 2026. Released just ahead of the WEF’s annual meeting in Davos, the report surveyed more than 1,300 leaders and experts from business, government, academia, and civil society.
Geoeconomic confrontation—using economic tools to exert pressure—ranked above misinformation, societal polarisation, extreme weather, and state-led armed conflicts as the most pressing risk for the year. Half of those surveyed anticipate a turbulent or stormy world over the next two years, a sharp increase from 36% last year. Longer-term projections suggest global instability may continue well into the next decade.
Short-Term Risks Are Rising Fast
Geoeconomic tensions topped the rankings for likelihood and severity in 2026, with 18% of respondents identifying them as the most probable trigger for a global crisis. Such tensions threaten supply chains, international cooperation, and economic stability.
The report notes that policies like US tariffs on imports from numerous nations have shaken global commerce and increased costs for both businesses and consumers. Other economic risks, including potential downturns, inflation, and asset bubbles, have also climbed in priority, signaling a volatile global market ahead. On the geopolitical side, 68% of respondents expect a multipolar or fragmented world order over the next decade.
Technology, Society, and the Environment
While economic risks dominate the short-term outlook, technology and social challenges are also rising. Misinformation and disinformation are ranked second, cyber insecurity sixth, and the risks associated with artificial intelligence have jumped dramatically in the long-term outlook. Societal polarisation and inequality remain major concerns, with inequality flagged as the most interconnected risk for the second year in a row.
Environmental risks, though lower in short-term rankings, are expected to be the most severe over the next decade, with extreme weather, biodiversity loss, and critical changes to Earth systems leading the list. Three-quarters of respondents foresee a turbulent environmental future.
Saadia Zahidi, WEF Managing Director, stressed the need for collaboration: “The challenges highlighted in this report—from geopolitical shocks to climate instability, societal strife, and economic risks—underscore both the scale of the potential perils and our shared responsibility to shape what comes next.”
