Geoeconomic confrontation has been identified as the most pressing short-term threat to global stability, according to the latest World Economic Forum (WEF) Global Risks Report. Decision-makers from across the world warned that the use of economic tools as instruments of geopolitical influence now ranks above traditional security and environmental risks.

The report, released on Wednesday, surveyed over 1,300 global experts, including policymakers, business leaders, and academics, about the greatest risks facing the international community over the next two years and beyond.

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What Is Geoeconomic Confrontation?

“Geoeconomic confrontation” refers to the strategic use of economic tools—including trade policy, sanctions, investment restrictions, and industrial controls—to achieve political or military objectives. These mechanisms, normally intended to foster cooperation and development, are increasingly being used as weapons to constrain rivals and consolidate spheres of influence.

Saadia Zahidi, Managing Director at the WEF, highlighted examples such as:

• Aggressive tariffs on trading partners
• Restrictions on foreign investment
• Supply chain controls over strategic resources, including critical minerals

“[Geoeconomic confrontation] is when economic policy tools become essentially weaponry rather than a basis of cooperation,” Zahidi said during an online press briefing.

The phenomenon reflects a broader shift toward economic competition as a form of geopolitical strategy, particularly amid rising protectionism and retreat from multilateral cooperation.

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From Ninth to First: Geoeconomic Confrontation Surges

The WEF report notes that geoeconomic confrontation rose from ninth place in 2025 to the top spot in 2026, reflecting intensifying trade wars, rising global protectionism, and politically motivated industrial policies. While the report did not single out specific nations, analysts link much of the trend to actions by major powers, including the United States under President Donald Trump, which has imposed aggressive tariffs and trade restrictions on multiple countries.

The report emphasizes that strategic government interventions in supply chains, particularly in sectors like energy, technology, and critical minerals, are reshaping global power dynamics.

“Protectionism, strategic industrial policy, and active influence by governments over critical supply chains all signal a world growing more intensely competitive,” the report states.

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Economic Pressures and Rising Instability

Alongside geopolitical competition, the WEF warns of growing economic vulnerabilities:

• Threats of global economic downturns
• Rising inflation and debt burdens
• Potential asset bubbles in volatile markets

These factors exacerbate the risks posed by geoeconomic confrontation, making international coordination and crisis management increasingly urgent.

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Other Short-Term and Long-Term Risks

While geoeconomic confrontation leads the short-term risk rankings, the report identifies misinformation, disinformation, and societal polarization as the second and third most critical short-term risks.

In the long term, environmental risks dominate. Over the next decade, experts ranked the following as the gravest global threats:

• Extreme weather events
• Biodiversity loss and ecosystem collapse
• Critical changes to Earth systems

Peter Giger, Group Chief Risk Officer at Zurich Insurance Group, cautioned that risks to critical infrastructure, such as energy grids, water supply, and digital networks, are being underestimated. The survey ranked such disruptions 22nd for the next two years and 23rd over ten years.

“It’s strikingly low for something so fundamental to modern life. This oversight is dangerous,” Giger said.

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Implications for Global Policy

The WEF report underscores the urgent need for governments and businesses to recognize economic tools as instruments of global power and to develop strategies to mitigate risks from geoeconomic competition. Experts warn that without coordinated responses, trade conflicts, industrial restrictions, and supply chain weaponization could trigger economic crises, disrupt markets, and destabilize international relations.