State-based armed conflict is now the biggest threat to the global economic stability, the World Economic Forum (WEF) has warned.
The forum’s latest Global Risks Report, published in advance of its annual meeting in Davos next week, paints a stark picture of the decade ahead with escalating geopolitical, environmental and technological challenges threatening stability and progress.
The report, which draws on the views of more than 900 global risks experts, ranked state-based armed conflict as the most immediate risk for 2025, identified by nearly a quarter of respondents. This reflected “heightened geopolitical tensions and fragmentation globally”, it said.
Misinformation and disinformation were ranked as the top short-term risks for the second consecutive year, underlining what the WEF said was “their persistent threat to societal cohesion and governance by eroding trust and exacerbating divisions within and between nations”.
The finding comes days after Facebook owner Meta said it would remove fact checking from its platform in the US, a decision campaigners say will increase the spread of false information and hate speech online.
Other leading short-term risks identified in the WEF’s report include extreme weather events, societal polarisation, cyber-espionage and warfare.
Environmental risks dominated the 10-year horizon, led by extreme weather events, such as the wild fires seen in recent days in California. Overall, extreme weather events were identified prominently as immediate, short-term and long-term risks.
The long-term risk profile was clouded by technological risks related to misinformation, disinformation and adverse outcomes of emerging AI (artificial intelligence) technologies.
“Rising geopolitical tensions, a fracturing of global trust and the climate crisis are straining the global system like never before,” said Mirek Dušek, the World Economic Forum’s managing director.
“In a world marked by deepening divides and cascading risks, global leaders have a choice: to foster collaboration and resilience, or face compounding instability. The stakes have never been higher,” he said.
The theme of this year’s Davos event is “Justice for All: A World without Barriers”. It will guide discussions on topics including income equality, gender justice, climate justice and access to energy.
Incoming US president Donald Trump is due to address the event via a live video link. Irish finance ministers Jack Chambers and Paschal Donohoe, who have been engaged in government formation talks here, are not due to attend but outgoing Taoiseach Simon Harris is listed among expected participants at the event in the Swiss ski resort.
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