The world is facing a new era of heightened geoeconomic tensions, according to the latest World Economic Forum (WEF) Global Risks Report. In a survey of over 1,300 global experts, "geoeconomic confrontation" has emerged as the single greatest risk to global stability over the next two years.
Trade Wars and Economic Weaponry
What this really means is that world leaders are increasingly using economic tools like tariffs, sanctions, and trade restrictions as geopolitical weapons to constrain rivals and assert influence. As Al Jazeera reports, examples include the aggressive tariff policies of the Trump administration, as well as efforts by the U.S. and allies to restrict access to critical minerals and other strategic resources.
Overshadowing Traditional Conflicts
The bigger picture here is that economic confrontation has now surpassed even the threat of traditional state-based armed conflict, which ranked second in the WEF survey. Extreme weather events came in third, underscoring how environmental risks are also seen as a growing menace.
According to CNBC, the issue that has risen the fastest in the rankings is the potential for adverse outcomes from artificial intelligence (AI) - a sign of the mounting unease over the societal impact of transformative technologies.
Implications for Businesses and Policymakers
For businesses and policymakers, this shifting landscape of global risks means having to navigate an increasingly complex web of economic warfare and technological disruption. As The Irish Times reports, the WEF warns of a "turbulent or stormy world" ahead, underscoring the urgent need for greater global cooperation and coordination to address these transnational threats.