The Middle East and Ukraine are still the most intense conflict areas, but in terms of area affected by conflict, Africa has seen greater expansion than any other region, with conflict zones doubling in size.
A total of 27 countries worldwide have experienced a significant increase in armed conflict risk in the past three years. Lesser-known conflicts are playing a part in overall geopolitical issues as well, including a civil war in Myanmar and escalating gang violence in Haiti and Ecuador.
More than 200,000 people were killed in conflicts this year.
In addition to the massive human toll, geopolitical instability has also raised the cost of doing business globally to a 10-year high.
Coupled with a push toward deglobalization characterized by increasing global trade restrictions and tax burdens and escalating diplomatic tensions, these conflicts have resulted in higher operational and labor costs for many companies.
While businesses in the affected regions look to diversify and derisk their supply chains, ongoing crime and human rights challenges complicate the process and could ultimately erode corporate margins and competitiveness.