The global economy is entering a turbulent phase of distrust, technological disruption, and geopolitical tension. The newly released Global Risks Report 2026 by the World Economic Forum (WEF) warns that the planet is facing a true “polycrisis” — a dangerous blend of economic conflict, AI instability, and relentless climate shocks.
Economy as a Weapon: Tariffs, Sanctions, and Trade Wars
The report identifies geo-economic confrontation as the number one global risk over the next two years. More countries are weaponizing their economies — using tariffs, export bans, investment restrictions, and tech regulations as geopolitical tools. This trend could severely damage global trade and cooperation.
Saadia Zahidi, managing director at the WEF, warns that inflation, market volatility, and ballooning public debt are amplifying the risk of a global economic downturn. Insurance giant Marsh, which co-published the report, describes the current era not as a single crisis but a "polycrisis moment".
“Companies today face multiple, overlapping challenges — from trade barriers and weather extremes to cultural divisions and rapid tech disruption,” said Marsh CEO John Doyle.
Disinformation and Polarization on the Rise
The second most urgent short-term threat is disinformation, especially online. Close behind is social fragmentation — the widening gap between ideological groups, fueled by distrust and tribalism.
Looking further ahead, inequality emerges as the most interconnected issue, underlying and exacerbating all other risks.
Artificial Intelligence: Rocketing Up the Risk Ladder
While AI risks ranked 30th last year, AI system failure has now surged into the top six long-term global threats.
The main fear? Mass job loss. As AI replaces human workers, consumption could fall, wealth gaps may widen, and public frustration could rise — even if businesses become more productive.
Additionally, the intersection of AI and quantum computing may lead to unpredictable outcomes where “humans lose control,” the report warns.
Natural Disasters: Sixth Year of Record Losses
Climate-related disasters continue to dominate in terms of frequency and cost. In 2025, insurers are projected to pay out more than $107 billion — the sixth consecutive year above the $100 billion mark.
Doyle cited California wildfires as an example, saying insurance pricing must reflect real risk and that new tech must help reduce future losses.
“There are investors and insurers willing to underwrite these risks,” he said. “But construction standards and tech must evolve.”
The report predicts that extreme heat, droughts, wildfires, and other weather events will become more intense and frequent in the years ahead.
Environmental Issues Losing Attention?
Interestingly, environmental concerns like pollution, species extinction, and ecological collapse are declining in perceived urgency. This shift shows how drastically global priorities have changed in recent years.
Bottom Line: The World Needs a “Coalition of the Willing”
The report ends with a clear message: Governments, businesses, academics, and civil society must work together to tackle the world’s greatest threats.
“Coalitions of the willing” will be essential to finding practical solutions to our most urgent global problems,” the report concludes.
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