The World Economic Forum's annual meeting this week is under the shadow of rising global economic fragmentation and escalating geopolitical tensions, according to Saadia Zahidi, the organisation's senior managing director.
Speaking to NDTV Profit about the outlook for 2026, Zahidi said geo-economic confrontation has emerged as the number one concern among experts and economists surveyed by the WEF. This goes far beyond tariff disputes, she noted, extending into investment screening, restrictions on critical resources, and increasing attempts by governments to secure and control strategic supply chains.
“These issues are front and centre at this year's meeting. They form the context under which we are bringing leaders together to talk to each other," she said.
The second-largest risk identified for 2026 is armed conflict between countries, a reflection of intensifying tensions and active conflicts across several regions. Zahidi added that while geopolitical turbulence historically results in instability, it has also, at times, been a catalyst for “creative destruction”, pushing economies and industries to adapt and innovate.
One of the notable findings in the WEF's latest economists' survey is the expectation that bilateral and minilateral trade agreements—particularly among smaller or like‑minded countries—are likely to peak soon. This trend indicates a shift away from broad multinational frameworks toward more targeted, interest‑based partnerships.
Amid the structural changes reshaping the global economy, Zahidi also flagged an artificial intelligence asset bubble as a rising concern. The rapid acceleration of AI investments, she warned, could create vulnerabilities. “If it busts, it will have an outsized impact on the global economy,” she said.
ALSO READ: Davos 2026: Geopolitics Or AI? RPG's Anant Goenka Outlines India Inc's Theme For 2026
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
