The World Economic Forum’s Global Risks Report 2026 warns that geoeconomic confrontation and armed conflict are rising as trade, finance and technology are increasingly weaponised
The world is balancing on a precipice as trade, finance and technology are being wielded as weapons of influence, an annual World Economic Forum (WEF) survey released on Wednesday said.
The survey of 1,300 global leaders and experts found that geoeconomic confrontation and state-based armed conflict are seen as the two biggest risks the world will face in 2026.
WEF’s Global Risks Report 2026 listed cyber insecurity, inequality of wealth and income, insufficient public services and economic downturn among the top risks for India. State-based armed conflict — including proxy wars, civil unrest, coups and terrorism — was ranked as the fifth biggest risk for the country. The report also flagged the Indus River Basin between India and Pakistan as a potential flashpoint over the next decade.
About half of those surveyed expect a turbulent or stormy global outlook over the next two years, up 14 percentage points from last year. The share rises to 57 per cent for 2036.
“Pessimism overall is on the rise in the shorter term. Respondents’ perception of the global outlook over the next two years has worsened compared with last year’s findings,” the survey said.
The findings come ahead of the WEF’s Annual Meeting in Davos-Klosters, Switzerland, scheduled from January 19 to 23, 2026, which will bring together leaders from business, government, international organisations, civil society and academia under the theme A Spirit of Dialogue.
The survey comes at a time when US President Donald Trump has threatened higher tariffs on several countries, including India, attacked Venezuela and declared his intent to annex Greenland.
“A new competitive order is taking shape as major powers seek to secure their spheres of interest,” said Børge Brende, president and chief executive officer of the World Economic Forum.
He added that this shifting landscape, where cooperation looks markedly different from the past, underscores the need for collaborative approaches and the spirit of dialogue.
The report warned that declining trust, weakening transparency and respect for the rule of law, along with rising protectionism, are straining international relations, trade and investment, and increasing the risk of conflict. It added that the multilateral system is under pressure.
India outlook
- Cyberinsecurity: Rising exposure amid deeper digital dependence
- Inequality: Wealth and income gaps among top domestic risks
- Public services: Capacity and delivery constraints flagged
- Economic risk: Downturn listed among key concerns
- Security: State-based armed conflict ranked 5th for India
- Flashpoints: Indus River Basin cited as potential India-Pakistan risk zone
