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The world is entering what the World Economic Forum (WEF) calls an "Age of Competition," marked by intensifying geoeconomic rivalry, rising societal polarization and accelerating technological disruption, according to the Global Risks Report 2026, released ahead of the forum's annual event.
Now in its 21st edition, the annual report draws on the Global Risks Perception Survey 2025-2026, which gathered views from more than 1,300 leaders and experts across government, business, academia and civil society. The report said that uncertainty has become the defining feature of the global outlook, with 50 per cent of respondents expecting the world to face either a "turbulent" or "stormy" period over the next two years. "As we enter 2026, the world is balancing on a precipice," the report read. "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" Among the most immediate dangers identified, geoeconomic confrontation has emerged as the top short-term global risk. Eighteen per cent of survey respondents selected it as the risk most likely to trigger a material global crisis in 2026, placing it ahead of state-based armed conflict The report linked this trend to the erosion of multilateral institutions and the growing use of sanctions, tariffs, investment controls and supply-chain restrictions as tools of national strategy. Economic risks have also intensified sharply. Concerns about an economic downturn, inflation and potential asset bubbles recorded the largest increases in ranking over the two-year horizon compared with last year's survey. While the International Monetary Fund projects global GDP growth of 3.1 per cent in 2026, the Forum cautions that the balance of risks remains tilted to the downside, particularly amid high public and private debt levels and volatile financial markets. Societal pressures remain deeply interconnected with these economic and geopolitical stresses. Inequality was identified as the most interconnected global risk for the second consecutive year, closely linked to economic instability, misinformation and declining trust in institutions. The report warned that the social contract between citizens and governments is under strain, fuelling political polarization and public disillusionment. Technological risks add another layer of complexity. Misinformation and disinformation rank among the most severe short-term threats, while adverse outcomes of artificial intelligence show the steepest rise in concern over the next decade. The Forum highlighted the potential for AI to reshape labour 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 occupy half of the top ten risks over the next decade, underscoring what the report describes as the existential nature of environmental threats despite current geopolitical distractions Despite the stark assessment, the report stressed that outcomes are not predetermined. "The future is not a single, fixed path but a range of possible trajectories, each dependent on the decisions we make today as a global community," it concluded, urging renewed forms of cooperation to prevent compounding risks from pushing the global system "over the edge." (ANI)
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