TAIPEI (TVBS News) — The World Economic Forum (世界經濟論壇, WEF) released its Global Risks Report on Wednesday (Jan. 14), identifying major power rivalry and strategic confrontation as the most severe short-term global risks in 2026. The report, which surveyed 1,300 business executives and leaders, revealed that half predict turbulence over the next two years, with only 1% expecting calm conditions.
As international competition intensifies, the report highlights the weaponization of economic tools, such as tariffs, regulations, supply chains, and capital restrictions. This trend has elevated geopolitical economic confrontation to one of the top concerns for businesses in the years to come. The WEF warns that this could lead to a significant contraction in global trade, exacerbating market volatility and investment uncertainty.
The report also draws on a WEF survey of business executives from 116 economies, involving over 11,000 leaders, to analyze key threats each country faces in the next two years. In Taiwan, the top five risks are decline of health and well-being, misinformation and disinformation spread, Disruptions to a systemically important supply chain, erosion of human rights and civil freedoms, and inflation. Globally, concerns focus more on interstate conflict and its spillover effects on the macroeconomy.
Saadia Zahidi, the WEF's managing director, noted that armed conflict and its spillover effects have resurfaced as core concerns. Nearly a third of respondents feel deeply uneasy about the global economy and the overall situation in 2026. She emphasized that economic-related risks have seen the largest increase in concern, with countries facing economic downturns, inflationary pressures, market volatility, and potential asset bubbles amid high debt burdens.
The report also highlights the rapidly rising risk of AI's negative impact, jumping from 30th in short-term risks last year to 5th in long-term risks. The WEF warns that workforce displacement and income inequality could lead to reduced consumption and social discontent, creating new economic and social pressure cycles. Despite extreme weather being the top concern for the next decade, short-term crises like war, inflation, and information risks have diverted international attention and policy resources from climate action.