The World Economic Forum has flagged a sharp rise in global uncertainty, warning that the world’s biggest powers face a volatile mix of economic conflict, war and climate stress in 2026. Its latest Global Risks Report, released on Wednesday, also identifies cybersecurity, inequality and weak social safety nets as major challenges for India.
How the report was put together
This is the 21st edition of the Global Risks Report. The WEF based its findings primarily on the Global Risks Perception Survey, which polled around 1,300 respondents, including business leaders, academics and civil society figures across the world. Participants were asked to assess risks over the short term, medium term, and long term and to rate their impact from low to high.
The WEF also drew on data from its Executive Opinion Survey, which covered more than 11,000 business leaders across over 100 countries. By combining both surveys, the forum said it aimed to capture broad global trends as well as country-specific risks.
Biggest threats facing the world in 2026
Geoeconomic confrontation emerged as the top global risk for 2026. About 18 percent of respondents ranked sanctions, tariffs and economic coercion as the biggest threat. The report warned that long-standing global rules are under strain, with trade, finance and technology increasingly being used as tools of influence.
“It’s very much about state-based armed conflict and the concerns around that,” said WEF Managing Director Saadia Zahidi in an interview with CNBC. “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.”
State-based armed conflict ranked second, with 14 percent of respondents citing wars such as Ukraine, the brief Israel-Iran conflict in 2025 and US action in Venezuela as key worries. Extreme weather events came third at eight percent, showing that geopolitical and economic tensions have overtaken environmental risks in the short term.
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Still, the WEF cautioned that climate risks dominate the long-term outlook. “Extreme heat, drought, wildfires and other extreme weather events are likely to become more intense and frequent,” the report said, adding that environmental threats remain the top concern over the next decade. Nearly 57 percent of respondents expect prolonged global instability.
What the report says about India
For India, cybersecurity was identified as the most pressing risk in 2026. The report linked this to India’s deepening reliance on digital infrastructure for governance and payments, even as systems like the Unified Payments Interface were praised for improving financial access.
The WEF also flagged income inequality and gaps in social welfare as vulnerabilities. It warned that external shocks, tariffs and supply chain disruptions could slow growth and strain stability. Water security was another concern, with the report noting that river basins such as the Indus could become flashpoints, especially after India suspended the Indus Waters Treaty with Pakistan following the Pahalgam terror attack.
A world of overlapping crises
Experts say the risks outlined reflect a world dealing with multiple pressures at once. “Today is not a moment of a big global crisis, it’s a moment of poly-crises,” said John Doyle, CEO of Marsh, speaking to CNBC. “It’s a lot for businesses to confront and to manage.”
Zahidi added that while leaders are consumed by immediate conflicts, climate risks remain unresolved. “That big looming existential risk around climate is still there. But our collective capacity and mindshare to act on it, that’s what’s been reduced,” she said.
Taken together, the report paints a picture of a turbulent 2026, where economic rivalry, security threats and long-term environmental dangers collide, leaving countries like India to balance growth with resilience in an increasingly fractured world.