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Economic conflicts are world's greatest risk, WEF survey suggests
The Guardian· 2026-01-14 09:15
Group 1 - Economic conflicts between major powers are identified as the greatest risk facing the world over the next two years, with "geoeconomic confrontation" cited by 18% of surveyed experts [1][2] - The second most common risk is "state-based armed conflict," mentioned by 14% of respondents, followed by "extreme weather events" at 8% [2] - Economic sanctions have become a prevalent tool, exemplified by the freezing of billions of dollars of Russian assets post-invasion of Ukraine [3] Group 2 - Concerns are rising regarding access to critical economic resources, particularly rare earth metals, which are essential for technology products and largely controlled by China [3][4] - The G7 finance ministers are actively discussing strategies to diversify the supply of these critical minerals due to their concentrated supply chains [4] - Over a longer horizon of 10 years, the most severe risks identified relate to climate emergencies, with "extreme weather events" being the top concern [4][5] Group 3 - The World Economic Forum (WEF) warns that traditional rules and institutions that have maintained stability are now under threat, as trade, finance, and technology are increasingly used as tools of influence [7] - The upcoming Davos meeting will gather numerous senior figures from politics, business, and civil society to discuss the global economy, highlighting the importance of dialogue amidst current tensions [5][6]
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]