current
Geopolitical Fragmentation
Rising geopolitical instability and tensions are reshaping the global landscape, requiring businesses to adapt to a more fragmented world.
Timeframe
near-term
Subcategories
Detailed Analysis
Geopolitical instability is a growing concern, ranking second among expert's top risks. The ongoing conflicts, trade tensions, and declining multilateralism are contributing to a more fragmented world. This fragmentation poses challenges for global companies, requiring them to consider political alignment and diversify suppliers, ultimately impacting consumers through increased costs.
Context Signals
The report mentions the ongoing crisis in the Middle East, the continuing conflict in Ukraine, and trade tensions between the US and China as key drivers.
The report notes a decline in belief that global-level decisions are the most effective for addressing future risks.
The survey reveals a slight increase in the proportion of experts and the public believing globalization will slow down.
Edge
Companies may increasingly prioritize regionalization and localization strategies to mitigate the risks of geopolitical fragmentation.
The increasing complexity of global trade may drive demand for new insurance products and services that address political and supply chain risks.
Geopolitical fragmentation could accelerate the development of alternative global governance structures and regional alliances.
