Online Reporter
Business Reporter
The World Economic Forum (WEF) has identified geo-economic confrontation as the primary threat facing the world in 2026.
The primary actors in current geo-economic confrontations are major powers, including the United States and China, along with other significant players like the European union members, India and the Gulf states.
Geo-economic confrontation involves using economic tools as “weaponry” to secure an advantage or impose costs.
The WEF 21st annual global risks report paints a sombre picture of a global landscape defined by “turbulent” expectations and shifting power dynamics.
Half of the surveyed experts predict a “stormy” world over the next two years, a 14 percent increase from the previous year.
Looking 10 years ahead, 57 percent of leaders expect a turbulent global environment, while only 1 percent anticipate a sense of calm.
Approximately 68 percent of respondents believe the next decade will be characterised by a “multipolar or fragmented” world order.
Geo-economic confrontation has surged eight spots to become the number one risk for the next two years.
State-based armed conflict is the second-highest risk for 2026, though it is expected to drop to 5th place by 2028.
Concerns regarding economic downturns and inflation have both risen eight positions, signaling a new phase of market instability.
Misinformation and disinformation rank as the second-most severe risk over the next two years.
While Artificial Intelligence (AI) risks currently rank 30th, they are projected to skyrocket to 5th place in the 10-year outlook due to concerns over labour markets and security.
Societal polarisation and inequality continue to be seen as “interconnected” risks that fuel broader instability and hinder social mobility.
Environmental risks, such as extreme weather and biodiversity loss, actually dropped in the rankings for the two-year outlook as leaders focus on immediate economic and geo-political crises.
Despite the short-term dip, environmental issues remain the most severe risks over the 10-year horizon, with extreme weather occupying the top spot.
