World Economic Forum: Global risks enter “Age of Competition” as geoeconomic tensions dominate 2026 outlook
Now in its 21st edition, the annual report draws from the Global Risk Perception Survey 2025-2026, which gathers the views of more than 1,300 leaders and experts from government, business, academia and civil society.
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The report stated that uncertainty has become the defining feature of the global outlook, and 50 percent of participants expect the world to face a “turbulent” or “stormy” period in the next two years.
“As we enter 2026, the world is balancing on a cliff,” the report said.
“The turmoil caused by kinetic warfare, as well as the deployment of economic weapons for strategic advantage, continues to tear societies apart. The rules and institutions that have long supported stability are under siege in a new era where trade, finance and technology are used as weapons of influence.”
Among the most pressing dangers identified, geoeconomic conflict emerged as the biggest short-term global risk. 18 percent of respondents selected this as the risk most likely to trigger a material global crisis in 2026, placing this risk ahead of state-based armed conflict.
The report attributed this trend to the erosion of multilateral institutions and the increasing use of sanctions, tariffs, investment controls and supply chain restrictions as tools of national strategy.
Economic risks have also intensified sharply. Concerns about economic downturn, inflation and potential asset bubbles recorded the biggest increase in the rankings over the two-year horizon compared to last year’s survey.
While the International Monetary Fund forecasts global GDP growth of 3.1 percent in 2026, the Forum warns that the balance of risks remains tilted to the downside, particularly due to high levels of public and private debt and volatile financial markets.
Societal pressures remain deeply linked to these economic and geopolitical tensions. Inequality has been identified as the most interconnected global risk for the second year in a row, closely linked to economic instability, misinformation and declining trust in institutions.
The report warned that the social contract between citizens and governments was under pressure, fueling political polarization and public disillusionment.
Technological risks add another layer of complexity. While disinformation and disinformation are among the most serious short-term threats, the negative consequences of artificial intelligence indicate that concerns will grow most rapidly in the next decade.
The forum highlighted the potential of AI to reshape labor markets, information integrity and global security if governance frameworks fail to keep pace with technological acceleration.
Environmental risks continue to dominate the long-term outlook. Extreme weather events, biodiversity loss and critical changes to Earth systems account for half of the top ten risks over the next decade; This underscores what the report describes as the existential nature of environmental threats despite current geopolitical distractions
The report emphasized that despite the harsh assessment, the results were not predetermined. “The future is not a single, fixed path but a series of possible trajectories, each dependent on the decisions we make today as a global community,” he said, calling for renewed forms of cooperation to prevent rising risks from pushing the global system “over the edge.”
