New Delhi, June 4 -- Geoeconomic fragmentation has reached a critical turning point, accelerating through 2025 and 2026 to spread beyond geopolitical rivals and infect traditionally allied economies.

According to a new World Economic Forum (WEF) report titled Deepening Divides: The Cost of a More Fragmented Financial System, released on Thursday in collaboration with Oliver Wyman, the widening structural shift is already imposing a massive toll on the global financial architecture.

The report warned that escalating tariffs, investment restrictions, and retaliatory measures are now actively raising costs and dismantling predictability for businesses within the US, the EU, Canada, Japan, and South Korea.

"Emerging markets and developing ...