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Tuesday, Apr 01, 2025

Armed Conflicts Emerge as the Most Immediate Threat to Global Economies, Says World Economic Forum

Armed Conflicts Emerge as the Most Immediate Threat to Global Economies, Says World Economic Forum

Geopolitical tensions and climate concerns dominate the WEF's latest risk report amid growing global uncertainty.
Global economies are increasingly wary as geopolitical tensions rise, marking armed conflicts as the most urgent threat to economic stability, according to a recent World Economic Forum (WEF) report.

Released in anticipation of next week’s annual Davos meeting, the WEF’s global risk survey highlights a pressing concern over the potential for political misjudgment to exacerbate tensions.

The annual survey, which consulted over 900 global risk experts, policymakers, and industry leaders, portrays an unsettled global economic outlook with 52% of respondents predicting uncertain economic conditions over the next two years.

The report attributes much of this uncertainty to heightening geopolitical pressures, influenced in part by major international elections and ongoing tensions such as the enduring conflict in Ukraine and Middle Eastern strife.

A notable finding is that nearly a quarter of respondents identified state-based armed conflict as a significant risk factor for global economies by 2025, reflecting deep-rooted anxieties over international relations.

Mirek Dusek, managing director of the World Economic Forum, underscored the prevailing tensions: “Many respondents expect a stormy or turbulent outlook for the next two years.

That seems to indicate that there is this sense of uncertainty around the future.

We can assume this is also connected to the fact we live in a very complex geopolitical environment – we unfortunately have a record number of conflicts around the world.”

The survey also uncovers concerns over broader geopolitical shifts, with apprehensions surrounding potential changes in international trade policies.

This includes the looming threat of new tariffs possibly being imposed by former U.S. President Donald Trump, which could escalate trade frictions further.

Alongside immediate geopolitical dangers, the survey notes climate change as the predominant long-term risk, with environmental factors such as extreme weather events, biodiversity loss, and potential ecosystem collapse posing severe threats over the coming decade.

The dual concerns of geopolitical instability and environmental degradation paint a picture of a deeply interconnected set of challenges facing global economies today.

Furthermore, the report draws attention to the role of misinformation and disinformation, heightened by the rapid advancement of artificial intelligence, as an additional near-term risk factor that complicates geopolitical landscapes.

In conclusion, the WEF’s findings emphasize the complex interplay of geopolitical and environmental challenges that cast long shadows over global economic future.

As world leaders gather in Davos, these risks provide a critical backdrop to discussions on how to navigate an increasingly tumultuous global landscape.
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