The World Economic Forum’s (WEF) latest risk survey shows business leaders bracing for a volatile global economy, as geoeconomic confrontation and increase in rising AI risks collide with deepening trade tensions and fragmented global cooperation.
The World Economic Forum’s 2026 Global Risks Report shows that close to half of 1,300 leaders believe that geoeconomic pressure is expected for the coming two years. Only 1% believe there will be stability. Tariffs, supply chain barriers, capital barriers, and trade weaponization have moved to the forefront of concerns for corporate leaders who revisit their views of growth and resilience.
The New Age of Geoeconomic And “Poly-Crisis”
The WEF warns that economic tools are increasingly being used as geopolitical weapons, raising the risk of a sharp contraction in global trade, in the new age of geoeconomic wars.
Managing Director Saadia Zahidi described the geoeconomic confrontation moment bluntly, saying, “It’s very much about state-based armed conflict and the concerns around that… nearly a third of our respondents are very concerned in 2026 about what that means for the global economy and essentially the state of the world.”
Economic risks have risen faster than any other category in the survey, driven by geoeconomic confrontation fears of downturns, inflation, asset bubbles, and mounting debt. Marsh CEO John Doyle stated the challenge as overlapping shocks rather than a single crisis and how the political economy of geoeconomic Europe in a changing world,
In an interview with CNBC Doyle stated that “Today is not a moment of a big global crisis, it’s a moment of poly-crises,” he said. Trade wars, cultural divisions, rapid tech disruption, and extreme weather aren’t standalone problems—they’re converging. “It’s a lot for businesses to confront and to manage.”
While environmental risks remain the top long-term concern, leaders’ immediate focus has shifted to geoeconomic fragmentation elsewhere. Zahidi warned that attention is shrinking even as climate threats persist.
Zahidi simply said that “That big looming existential risk around climate is still there. But our collective capacity and mind share to act on it, that’s what’s been reduced.”
Trade Wars, Technology, And Unintended Consequences
These warnings echo growing geoeconomic confrontation concerns about trade policy, particularly the expanding use of tariffs. President Trump’s push for reciprocal tariffs set to intensify on April 2 aims to rapidly reorder US economic relations.
Trump is losing his geoeconomic war.
But critics argue a multifront trade advances in geoeconomic war could undermine America’s ability to compete in critical and emerging technologies that underpin growth and national security.
The core risk is not short-term trade balances, but long term innovation. Technology value chains are global, spanning research, manufacturing, and investment across Asia, Europe, and the Global South.
Disrupting them raises costs and injects uncertainty into sectors where the US still holds an edge, including AI, advanced semiconductor design, biotechnology, and quantum computing.
Semiconductors illustrate the dilemma leading to geoeconomic competition.
US firms lead in chip design but depend on manufacturing in Taiwan and South Korea, equipment from Japan and the Netherlands, and materials from China. Tariffs and retaliatory controls risk slowing investment and raising costs, potentially weakening the very AI revolution policymakers want to accelerate leading to geoeconomic competition. Similar pressures apply to biotechnology and quantum industries, which rely heavily on international collaboration and specialized imports.
The World Economic Forum’s findings and recent developments in international trade policy points to one and the same conclusion. There currently exists a period of multiple crises, during which current short term geoeconomic confrontation behavior has the power to heighten risks in technology and economy in the longer term.
Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Tech sections to stay informed and up-to-date with our daily articles.