Geoeconomic confrontation emerges as top global risk, says WEF report

The World Economic Forum's Global Risks Report 2026 flags geoeconomic confrontation as the biggest global threat, with interstate conflict, climate risks and polarisation close behind

Cyber insecurity, inequality of wealth and income, insufficient public services and economic downturn are among the top risks that India faces this year, the World Economic Forum’s Global Risks Report 2026 said on Wednesday. The report mentioned state-based armed conflict, such as proxy and civil wars, coups and terrorism, as the fifth biggest risk for India.

 

Geoeconomic confrontation has emerged as the top global risk for 2026, followed by interstate conflict, extreme weather, societal polarisation, and misinformation and disinformation, according to WEF’s Global Risks Perception Survey covering 1,300 experts worldwide.

 

The report highlighted that the multilateral system is under pressure.

 

 

WEF said that declining trust, diminishing transparency and respect for the rule of law, along with heightened protectionism, are threatening long-standing international relations, trade and investment, and increasing the propensity for conflict.

 

“A new competitive order is taking shape as major powers seek to secure their spheres of interest. This shifting landscape, where cooperation looks markedly different from how it did yesterday, reflects a pragmatic reality: collaborative approaches and the spirit of dialogue remain essential,” said Børge Brende, president and chief executive officer, World Economic Forum.

 

The report also noted that with water security concerns likely to continue rising worldwide, governments with upstream control over rivers and reservoirs could be tempted to divert water to their own populations at the expense of neighbouring countries. It said that potential flashpoints over the next decade could include the Indus river basin, between India and Pakistan.

 

WEF also cited India’s Unified Payments Interface as an example of measures to reduce the proportion of citizens who are unbanked or enable faster and more efficient payments.