Sanctions and Tariffs Take Centre Stage as Top Global Risk
Rising economic hostilities between major nations are now viewed as the biggest threat to world stability in 2026, according to the World Economic Forum’s latest Global Risks Report. The study, released ahead of the WEF’s annual summit in Davos, points to geoeconomic confrontation — the growing use of sanctions, tariffs and trade barriers — as the most serious danger facing the global order.
Drawing on insights from more than 1,300 experts across business, government, academia and civil society, the report ranks economic confrontation above misinformation, political polarisation, extreme weather and armed conflict. Half of those surveyed expect the world to face turbulent conditions over the next two years, a sharp rise from last year’s findings. Only a small fraction believe stability or calm lies ahead, while long-term forecasts predict an extended period of global instability.
WEF Managing Director Saadia Zahidi described the report as a warning signal for policymakers, stressing that while risks are intensifying, they are not unavoidable if nations choose cooperation over conflict.
Trade Wars, Debt Pressures and a Fragmenting World Order
Geoeconomic confrontation not only topped the list of near-term risks, but also ranked as the most severe threat over the next two years. Experts warn that escalating rivalries between powerful states could disrupt supply chains, strain global markets and weaken international cooperation during future crises.
The findings follow a year of dramatic shifts in global trade policy, including sweeping tariff measures introduced by US President Donald Trump. His aggressive trade strategy has unsettled global commerce, driven up costs for consumers and placed pressure on international business operations.
At the same time, 68% of respondents believe the world is heading toward a multipolar or fragmented political order over the next decade. Economic risks are rising quickly, with fears of downturns, inflation, ballooning debt and asset bubbles all climbing in urgency. The WEF cautions that mounting debt combined with trade tensions could trigger fresh waves of global financial volatility.
Technology Anxiety and Climate Fears Shape the Long-Term Outlook
Beyond economics, misinformation and disinformation were ranked as the second-greatest short-term threat, while cyber insecurity remains a major concern. Artificial intelligence also saw one of the steepest jumps in perceived risk, reflecting growing unease about AI’s influence on jobs, security and social stability in the years ahead.
Societal polarisation and inequality continue to rank high, with inequality again identified as the most interconnected global risk. Meanwhile, environmental dangers — though slightly lower in short-term rankings — dominate the long-term outlook. Extreme weather, biodiversity loss and critical changes to Earth’s systems are viewed 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 reality: global cooperation is essential. The overlapping pressures of economic conflict, technological disruption, climate instability and geopolitical tension underline both the scale of the challenges ahead and the shared responsibility to confront them.
