Geoeconomic confrontation has emerged as the world’s most significant risk in 2026, according to the World Economic Forum’s Global Risks Report 2026, as rising geopolitical and economic tensions continue to reshape the global landscape.
The report warned that escalating trade disputes, sanctions, tariffs and strategic rivalry among major powers are weakening multilateral cooperation and fragmenting global markets, creating heightened uncertainty for investment, trade and long-term economic growth.
Closely linked to this threat is the growing risk of state-based armed conflict, with geopolitical rivalries increasingly spilling into military confrontations, proxy wars and regional instability. These developments, the Forum notes, are already disrupting global supply chains, energy markets and capital flows.
Extreme weather events remain among the top global risks, reflecting the rising economic costs of climate change through infrastructure damage, food insecurity, supply chain disruptions and increasing insurance losses.
The Forum also identified societal polarisation as a major concern, warning that deepening political, social and ideological divisions are undermining consensus-building, policy effectiveness and institutional stability across many countries.
Misinformation and disinformation continue to pose serious risks, distorting public discourse, eroding trust in institutions and amplifying political and market volatility.
An economic downturn remains a looming threat, driven by high debt levels, tight financial conditions and persistent geopolitical uncertainty, raising the risk of slower growth and financial stress across economies.
The report further highlighted the erosion of human rights and civic freedoms, noting that declining rule of law and shrinking civic space could fuel instability, deter investment and weaken long-term economic resilience.
Rapid technological change also featured prominently, with adverse outcomes of artificial intelligence posing risks related to labour displacement, ethical failures, governance gaps and systemic misuse.
Cyber insecurity rounded out the top global risks, as growing reliance on digital systems exposes governments and businesses to increasingly sophisticated cyber threats, while rising inequality threatens to deepen social tensions and amplify other global risks if left unaddressed.
The World Economic Forum concluded that these risks are increasingly interconnected and compounding, underscoring the urgent need for stronger cooperation, resilience and forward-looking governance in an increasingly fragmented world.
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