Global power rivalries and strategic standoffs have emerged as the most severe near term risks facing the world as it moves toward 2026, according to the World Economic Forum’s Global Risks Report released Wednesday. The findings suggest growing instability, with leaders warning that global cooperation is becoming harder at a time of rising geopolitical tension.
Half of the executives and policymakers surveyed said they expect volatile conditions over the next two years, while just 1 percent foresee a calm global environment. The report describes the world as “sitting on a precipice,” reflecting heightened uncertainty across political and economic systems.
The survey, which gathered responses from 1,300 leaders across government, business and civil society, shows that geoeconomic confrontation has climbed to the top of short term business risks. The report highlights growing competition between states and the increased use of economic tools such as tariffs, regulations, supply chain controls and capital restrictions. These trends, it warns, could trigger a sharp contraction in global trade.
“It’s very much about state-based armed conflict and the concerns around that. So overall, nearly a third of our respondents are very concerned in 2026 about what that means for the global economy and essentially the state of the world,” said WEF Managing Director Saadia Zahidi in an interview with CNBC’s “Squawk Box Europe.”
Economic risks recorded the fastest rise among all categories tracked by the WEF. “Concerns [are] growing over an economic downturn, rising inflation and potential asset bubbles as countries face high debt burdens and volatile markets,” Zahidi wrote in the report.
Misinformation and disinformation ranked second among short term risks, followed closely by societal polarization. Over the next decade, inequality was identified as the most interconnected threat, with the report warning that these forces could weaken cooperation needed to manage economic shocks.
The potential negative outcomes of artificial intelligence climbed sharply in the rankings, jumping from 30th place last year to fifth among long term risks. The report cautioned that labor displacement could worsen income inequality, reduce consumer spending and deepen social unrest despite productivity gains.
Environmental risks were less prominent in the short term, but extreme weather remains the top concern over the next 10 years. Global insured losses from natural disasters are projected to reach $107 billion in 2025.
The report concludes that stronger collaboration among governments, businesses and institutions is essential. Yet Zahidi warned that a retreat from multilateralism raises a critical question for the future: “Will we be able to work together when we need to?”
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