Posthaste: World ‘on a precipice’ as ‘geoeconomic confrontation’ risk soars, warns WEF

Just days before the global elite meet in Davos, Switzerland, for the

World Economic Forum ‘s annual gathering, Donald Trump fired a shot that threatens to ignite what some say could be the most serious crisis in transatlantic relations in decades.

Trump posted on social media over the weekend that he would impose a 10 per cent tariff, rising to 25 per cent in June, on eight European nations which oppose his plan for “the complete and total

purchase of Greenland ” by the United States. The threat disregards trade agreements reached with European Union and United Kingdom, and in response E.U. governments are considering hitting the U.S. with 93 billion euros worth of tariffs or restricting American companies from the bloc’s markets, reports the Financial Times.

A report released last week that will set the agenda for the Davos meetings now seems disturbingly prophetic.

“As we enter 2026, the world is balancing on a precipice,” said the

WEF’s global risks report . “Rules and institutions that have long underpinned stability are under siege in a new era in which trade, finance and technology are wielded as weapons of influence.”

This “geoeconomic confrontation” shot to the top of the ranking this year, identified by the survey of 1,300 leaders and experts as the most pressing immediate global risk. The threat to investment, supply chains and access to natural resources pushed last year’s top risk “state-based armed conflict,” into second place.

The survey reflects the turmoil the world has experienced since Trump turned the global trading system on its head with his onslaught of tariffs.

And it could get worse. “While we may be getting used to tariffs, there is a risk for geoeconomic confrontation to turn into full-scale economic war with port blockades, export restrictions for key goods, cancelled contracts and capital controls, to name just a few,” said Mark Elsner, the WEF’s head of Global Risks Initiative.

The number of respondents in the survey anticipating a “stormy” or “turbulent” outlook over the next two years rose sharply from last year.

Besides geoeconomic confrontation, the risks of an economic downturn and inflation notched the biggest increases in the risk ranking. The threat of an asset bubble bursting also jumped up seven positions in the ranking.

“This highlights the volatile combination that might result from the interplay between mounting debts, economic downturn, and uncertain returns on investments in frontier technologies (AI, quantum),” said Elsner.

“Add geoeconomic confrontation into this mix, and the impact could destabilize not only businesses but entire societies.”

Trump himself will be centre stage this week at Davos, attending with U.S. Treasury Secretary Scott Bessent, Secretary of State Marco Rubio and the largest delegation the U.S. has ever sent the forum, reports Bloomberg. The president will speak Wednesday.

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Population growth fell considerably faster in Canada’s big cities than in smaller centres after the federal government cut back on the number of non-permanent residents in the country.

Vancouver’s population “essentially stagnated” in 2025 with growth at its weakest since 2001, said National Bank of Canada. Toronto’s gains were the lowest since the pandemic.

Montreal is also down, but for the first time on record its population growth beat Vancouver and Toronto’s.

The chart on the right shows how there is a correlation between population growth and home prices.

“There is no doubt that the slowdown in immigration will be a drag on the country’s housing market over the next two years, particularly in large urban centres,” said National Bank economists Matthieu Arseneau and Daren King.

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What happens to the remaining balance in a registered education savings plan (RESP) account after your kids have finished their education? FP Answers walks parents through the rules and options.

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Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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