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Tariffs and AI's downside pose top global risks for business, World Economic Forum says
CNBC· 2026-01-14 09:15
Group 1: Global Economic Risks - The World Economic Forum's Global Risks Report identifies global power rivalries and strategic standoffs as the most severe near-term risks heading into 2026 [1] - Half of the surveyed business executives expect turbulent times over the next two years, with only 1% anticipating calm [2] - Geoeconomic confrontation has emerged as the top business concern, driven by competition and the use of economic tools like tariffs and supply chain constraints, potentially leading to a significant contraction in global trade [3] Group 2: Societal and Technological Risks - Misinformation and disinformation rank as the second most significant short-term risk, followed by societal polarization, with inequality identified as the top interconnected risk over the next decade [7] - The potential adverse outcomes of artificial intelligence have surged in concern, moving from 30th to 5th place among long-term risks [8] - Labor displacement due to technological advancements could exacerbate income inequality and social divides, leading to economic contraction and social discontent [9] Group 3: Environmental Risks - Extreme weather remains the primary concern for leaders over the next decade, with global insured losses from natural catastrophes projected to reach $107 billion in 2025 [9] - The report highlights the need for regulations that accurately reflect underlying risks to attract capital to the insurance market, as illustrated by the wildfires in California [11] - Environmental risks such as biodiversity loss and pollution have decreased in priority among leaders, indicating a shift in focus towards more immediate concerns [12] Group 4: Collaborative Solutions - The report emphasizes the importance of "coalitions of the willing," advocating for collaboration among governments, academic institutions, businesses, and citizens to address global challenges effectively [13]