Sanctions and Tariffs Take Centre Stage in Global Risk Outlook
Rising economic conflict between major world powers has been named the most serious threat to global stability in 2026, according to the World Economic Forum’s latest Global Risks Report. Released ahead of the WEF’s annual gathering in Davos, the report highlights “geoeconomic confrontation” — the growing use of sanctions, tariffs and trade restrictions — as the top global risk for the year.
Drawing on insights from more than 1,300 experts across business, government, academia and civil society, the report places economic warfare above misinformation, social 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 global stability is likely in the near future.
WEF Managing Director Saadia Zahidi described the report as an early warning signal, noting that rising competition between nations is stretching the world’s ability to manage shared challenges — though she stressed these risks are not unavoidable if cooperation improves.
A Fragmenting Global Order and Growing Financial Pressures
Geoeconomic confrontation also ranked as the most severe short-term threat, climbing dramatically from last year’s position. Respondents warned that intensifying rivalries between powerful nations could disrupt supply chains, shake global markets and weaken international cooperation during crises.
The report follows a year of aggressive trade policies from the United States, with President Donald Trump’s sweeping tariffs on imports from numerous countries unsettling global commerce and raising costs for businesses and consumers. Alongside this, 68% of respondents expect the world to shift toward a more fragmented, multipolar political order over the next decade.
Economic concerns are rising across the board. Risks of downturns and inflation have jumped significantly in the rankings, while fears of mounting debt and asset bubbles are growing. The WEF warns that combined economic tensions and rising debt levels could trigger a new wave of global financial instability.
Technology Anxiety Grows as Climate Risks Dominate the Long Term
Beyond economics, misinformation and disinformation remain a major concern, ranking as the second-largest global risk in the short term. Cyber insecurity also features prominently, while fears about artificial intelligence have surged in the long-term outlook, reflecting worries over AI’s impact on jobs, social stability and security.
Although environmental risks have slightly dropped in short-term rankings, they dominate the long-term forecast. Extreme weather, biodiversity loss and major disruptions to Earth’s systems are seen as the most severe threats over the next decade. Three-quarters of respondents expect environmental conditions to worsen significantly.
Zahidi concluded that the report’s message is clear: global cooperation is essential. With geopolitical tensions, rapid technological change, climate pressures and economic instability all converging, she said the world faces serious challenges — but also shared responsibility in shaping what comes next.
