Ahead of the World Economic Forum (WEF) annual meeting of the world’s rich and powerful in Switzerland from January 19 to 23, the Forum has brought out its 21st annual global risk report based on its survey of 1,300 experts.
It warns that ‘the world is balancing on a precipice. The turmoil caused by kinetic wars alongside deployment of economic weapons for strategic advantage is continuing to fragment societies. 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’.
The report takes risks and worst-case scenarios across three timeframes: immediate (2026); short-to-medium term (the next two years); and long term (the next ten years). In the near term, ‘geoeconomic confrontation’ tops the near-term rankings, with 18 per cent of respondents viewing it as the risk most likely to trigger a global crisis in 2026. As for the outlook, the survey suggests that ‘pessimism overall is on the rise in the shorter term’.
Børge Brende, President and CEO, World Economic Forum, said: “A new competitive order is taking shape as major powers seek to secure their spheres of interest. This shifting landscape, where cooperation looks markedly different than it did yesterday, reflects a pragmatic reality: collaborative approaches and the spirit of dialogue remain essential. Our Annual Meeting in Davos will serve as a vital platform for understanding risks and opportunities and for building the bridges needed to address them.”
Critical infrastructure
As for infrastructure such as power, water, transport and communications, the report warns that ‘ageing critical infrastructure is becoming more prone to failures or accidents’. The report points to interdependencies; for example, ‘during a blackout, water supply that depends on digitized networks might be impacted and nuclear power plants that require water for cooling may be forced to limit their operations’.
‘Early warning system’
Saadia Zahidi, Managing Director, of the WEF, said: “The Global Risks Report offers an early warning system as the age of competition compounds global risks – from geoeconomic confrontation to unchecked technology to rising debt – and changes our collective capacity to address them. But none of these risks are a foregone conclusion. The challenges highlighted in the report underscore both the scale of the potential perils we face and our shared responsibility to shape what comes next.”
For the Global Risks Report visit https://www.weforum.org/publications/global-risks-report-2026/.
