Economic Warfare Seen as the Biggest Global Threat
Rising economic conflict between powerful nations is now considered the greatest danger to global stability, according to the World Economic Forum’s Global Risks Report 2026. The report, released ahead of the WEF’s annual Davos meeting, warns that tools such as sanctions, tariffs and trade restrictions are increasingly being used as weapons — a trend experts believe could destabilise the world economy.
Based on insights from more than 1,300 leaders across business, government, academia and civil society, the study found that geoeconomic confrontation ranks above misinformation, social division, extreme weather and even armed conflict as the top global risk for 2026. Half of respondents expect the world to experience turbulent conditions over the next two years, while only a small minority believe stability is on the horizon.
WEF Managing Director Saadia Zahidi described the report as an early warning system, stressing that while risks are growing, they are not inevitable if global cooperation improves.
Trade Disputes, Debt and a Shifting World Order
Economic confrontation also ranked as the most severe threat over the next two years, climbing sharply from last year’s position. Experts warn that intensifying rivalries between major powers could disrupt supply chains, weaken global markets and limit the world’s ability to respond to financial shocks.
The findings follow a year of major trade disruption, driven in part by US President Donald Trump’s aggressive tariff policies, which have strained international commerce and increased costs for businesses and consumers worldwide. Alongside this, nearly 70% of respondents expect the world to move toward a multipolar or fragmented political order over the next decade.
Concerns over economic downturns, inflation, rising debt and potential asset bubbles have also grown significantly. The WEF cautions that mounting debt levels combined with geopolitical economic tensions could trigger a new era of market volatility.
Technology Risks Rise as Climate Threats Loom Long Term
Misinformation and disinformation ranked as the second most serious short-term risk, followed closely by societal polarisation and cyber insecurity. Meanwhile, fears over artificial intelligence surged in the long-term outlook, reflecting growing anxiety about AI’s impact on employment, security and social stability.
Although environmental risks slipped slightly in short-term rankings, they dominate the long-term picture. Extreme weather, biodiversity loss and major disruptions to Earth’s systems were identified as the most severe threats over the next decade. Three quarters of respondents expect environmental conditions to worsen significantly.
Zahidi concluded that the report highlights a clear message: global cooperation is essential. The overlapping challenges of political conflict, rapid technological change, climate instability and economic stress underline both the dangers ahead and the shared responsibility to shape a more stable future.
