National Economic Challenges under International Conflicts, Digitalization, and Climate Shifts: A Triangular Resilience Balance-Sheet Model

Authors

DOI:

https://doi.org/10.36690/2674-5208-2026-2-21-35

Keywords:

national economy, international conflicts, digitalization, climate change, economic resilience, economic security, geopolitical risk, digital divide, climate risk, fiscal vulnerability, structural shocks, state capacity

Abstract

National economies increasingly face complex and overlapping economic challenges caused by international conflicts, accelerated digitalization, and climate shifts. International conflicts disrupt trade, energy security, investment flows, fiscal priorities, migration processes, and financial stability. Digitalization creates opportunities for productivity growth, innovation, public-sector modernization, and economic competitiveness, but also deepens structural inequalities between digitally advanced and digitally excluded states. Climate shifts intensify economic vulnerability through extreme weather events, infrastructure damage, food and water insecurity, displacement, productivity losses, and rising adaptation costs.The objective of this article is to analyse the economic challenges faced by individual states under the simultaneous influence of international conflicts, digitalization, and climate change and to propose a model for assessing national economic stress and resilience. The study applies a conceptual and analytical methodology based on academic literature and verified statistical evidence from the International Monetary Fund, World Bank, International Telecommunication Union, World Meteorological Organization, INFORM Risk Index, ND-GAIN, and Germanwatch Climate Risk Index. The article develops the Triangular National Economic Resilience Balance-Sheet Model, which compares three structural liabilities of a state: conflict liability, digital transition gap, and climate exposure, with its resilience buffer. The results show that national economic vulnerability is determined not only by the strength of individual shocks but also by their combination. The model calculations demonstrate that Germany has a resilience surplus, Ukraine faces high vulnerability due to conflict liability, India experiences elevated pressure because of the interaction between digital gap and climate exposure, Egypt faces elevated combined pressure, and Brazil remains manageable but close to elevated pressure. The article concludes that national economic security increasingly depends on integrated resilience planning. States should not treat conflicts, digitalization, and climate change as separate policy fields.Future research should test the proposed model using full country-level datasets, expand the sample of countries, introduce sectoral indicators, and conduct sensitivity analysis of resilience-buffer components.

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Author Biographies

Henriett Karolyi, John von Neumann University

PhD Student, Doctoral School of Management and Business Administration, John von Neumann University, Kecskemet, Budapest

Liudmyla Akimova, Cyprus University of Technology

D.Sc. in Public Administration, Professor of the Department of Human Resources and Entrepreneurship, National University of Water and Environmental Engineering, Rivne, Ukraine; Cyprus University of Technology, Limassol, Cyprus

Oleksand Akimov, Interregional Academy of Personnel Management

D.Sc. in Public Administration, Professor of the Department of Public Administration, Interregional Academy of Personnel Management, Kyiv, Ukraine; Scientific and Methodological Center for Personnel Policy of the Ministry of Defense of Ukraine, Kyiv

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Published

2026-06-30

How to Cite

Karolyi, H., Akimova, L., & Akimov, O. (2026). National Economic Challenges under International Conflicts, Digitalization, and Climate Shifts: A Triangular Resilience Balance-Sheet Model. Economics, Finance and Management Review, (2(26), 21–35. https://doi.org/10.36690/2674-5208-2026-2-21-35

Issue

Section

Chapter 1. Current trends in economic development