Key Points
- The World Economic Forum’s new report warns of “turbulent times” ahead.
- Global power rivalries and economic confrontation are the top short-term risks. Misinformation and societal polarization are also major concerns.
- The potential for adverse outcomes from AI has jumped into the top five long-term risks.
- While extreme weather is the top long-term concern, other environmental risks have been “deprioritized.”
The world is “sitting on a precipice,” according to a new report from the World Economic Forum. The annual Global Risks Report, which surveys over 1,300 leaders from government, business, and other organizations, paints a grim picture for the next two years. The top concerns are rising global power rivalries and a potential economic downturn.
“Geoeconomic confrontation” has risen to the top of business concerns. This refers to the intensifying competition among nations and the “weaponization” of economic tools such as tariffs, supply chains, and regulations. The report warns that this could lead to a major contraction in global trade.
“It’s very much about state-based armed conflict and the concerns around that,” said WEF Managing Director Saadia Zahidi. “Nearly a third of our respondents are very concerned in 2026 about what that means for the global economy.”
Economic risks in general have seen the sharpest rise in the survey. Leaders are concerned about a potential recession, rising inflation, and asset bubbles, especially as many countries face high debt levels.
Beyond the economy, misinformation and societal polarization are also major short-term risks. And looking ahead to the next decade, inequality is seen as the biggest interconnected threat.
The rapid rise of artificial intelligence is another new and significant concern. The potential for adverse outcomes from AI has jumped from 30th place on the short-term risk list last year to fifth place on the long-term list. The report warns of a supercharged landscape that “may lead to situations in which humans lose control.”
Interestingly, while extreme weather remains the top long-term concern, other environmental risks, such as biodiversity loss and pollution, have moved down the list. It seems that with so many immediate crises to deal with, leaders are “highly distracted” and have less “mind share” to focus on the bigger, existential threats.
