Davos 2026 Global Risks Report: South Caucasus at intersection of hybrid warfare stress [ANALYSIS]
The World Economic Forum’s Global Risks Report 2026, based on insights from more than 11,000 experts across 116 economies, paints a stark picture of an international system entering a period of heightened fragmentation. For the next two years, respondents identify geoeconomic confrontation as the most severe global risk, followed closely by misinformation and disinformation, and the deepening polarisation of societies. Together, these trends reflect a world in which economic policy, information flows, and domestic politics are increasingly weaponised.
Rather than operating in isolation, these risks are mutually reinforcing. Trade restrictions, sanctions and economic decoupling exacerbate domestic economic stress; misinformation amplifies social divisions; and polarisation, in turn, weakens institutional resilience. For regions already shaped by geopolitical tension, such as the South Caucasus, this convergence of risks has particularly profound implications.
In the 2026 report, Azerbaijan’s risk profile is dominated by cybersecurity, environmental degradation and inflationary pressures. The emphasis on cybersecurity reflects the growing exposure of state institutions, financial systems and critical infrastructure to digital threats. As public services, energy systems and transport networks become more technologically integrated, the potential impact of cyber incidents increases exponentially.
Environmental risks also feature prominently. Air, water and soil pollution are identified not merely as ecological concerns but as long-term socio-economic stressors. Environmental degradation can undermine public health,........
