WEF Global Risks Report 2026

January 21, 2026

World Economic Forum released 21st edition of the Global Risks Report 2026, identifying cybersecurity as the biggest risk for India in 2026, while geoeconomic confrontation has emerged as the single most severe global risk, overtaking armed conflict and climate-related threats.

The report marks the second half of a turbulent decade and provides a structured assessment of risks across short-term (2026), medium-term (2 years), and long-term (10 years) horizons.

Global Risks Report 2026: Key Takeaways

Top Global Risk (2026): Geoeconomic Confrontation
Top Risk for India (2026): Cybersecurity
Rising inequality, weak public services, and strategic instability amplify the impact of global shocks.
The world is entering an “age of competition”, marked by declining multilateralism and rising confrontation.

Global Risk Outlook (Short, Medium & Long Term)

Immediate Term (2026)

Geoeconomic Confrontation ranks #1 globally
- Overtakes:
  - State-based armed conflict
  - Extreme weather events
Reflects increasing use of:
- Trade restrictions
- Sanctions
- Investment controls
- Technology bans
Signals retreat of multilateralism and rise of protectionism

Other Major Global Risks (Short Term)

State-based armed conflict – Rank 2
Extreme weather events
Societal polarisation
Misinformation & disinformation – Rank 5 globally
Cyber insecurity – Rank 9 globally
Adverse outcomes of AI – Enters Top 10

Two-Year Outlook

Misinformation & disinformation: Rank 2
Cyber insecurity: Rank 6
Technological risks remain largely unchecked

Long-Term Outlook (Next 10 Years)

Climate-related risks dominate:
- Extreme weather events
- Biodiversity loss
- Critical changes to Earth systems
These risks pose existential and irreversible threats

Economic Risks: Rising Sharply

Economic risks show the largest jump in rankings:
- Economic downturn: Up 8 positions (Rank 11)
- Inflation: Up 8 positions (Rank 21)
- Asset bubble burst: Up 7 positions (Rank 18)
Indicates growing macroeconomic fragility globally

Uncertainty as the Defining Theme

GRPS (Global Risks Perception Survey) findings:
- 50% expect a turbulent or stormy outlook over the next 2 years
- 57% expect the same over the next 10 years
Only 1% foresee a calm global outlook
Compared to last year:
- Short-term pessimism increased by 14 percentage points
- Slight improvement in long-term outlook perceptions

India Risk Outlook 2026

Top Risks for India

Cybersecurity – Biggest risk
Income and wealth inequality
Insufficient public services & social protection
- Education
- Infrastructure
- Pensions
Economic downturn
State-based armed conflict

India’s Risk Profile

More societal and governance-focused
Less geopolitical than the global average
Highlights need for:
- Digital security
- Inclusive growth
- Resilient public service delivery

Cybersecurity: A Systemic National Vulnerability (India)

369.01 million malware detections in 2025
(Data Security Council of India)
Attack profile:
- Trojans: 43.38%
- Infectors: 34.23%
- Mobile threats:
  - Malware: 42%
  - Adware: 26%
Risk drivers:
- Rapid digitisation of:
  - Governance (DBT, Aadhaar-linked services)
  - Finance (UPI, fintech)
  - Critical infrastructure
Cyber risks now threaten:
- Elections
- Financial systems
- Power grids
- Public trust

Inequality as a Risk Multiplier (India)

Gini Index: ~25.5 (2022–23) – relatively low
But:
- Top 1% captured 22.6% of national income (2022) – Oxfam
Consequences:
- Amplifies economic shocks
- Raises risk of:
  - Social unrest
  - Political polarisation
  - Institutional distrust
- Weakens crisis response capacity

Public Services & Social Protection Gaps

Public health expenditure: 1.9% of GDP
(Target: 2.5% by 2025 – National Health Policy 2017)
Social protection spending: ~5% of GDP
(Global average ~13% – ILO, World Social Protection Report 2024–26)
Result:
- Low shock absorption capacity
- Climate and economic shocks turn into governance crises

Geoeconomic Shocks & India

Deep integration with:
- Global trade
- Energy markets
- Capital flows
FPI outflow (2025): USD 18.9 billion
Drivers:
- Trade tensions
- Currency volatility
- US tariff fears
Spillover effects:
- Weaker exports
- Job losses
- Fiscal stress

State-Based Armed Conflict & Hybrid Threats

Rising risks from:
- Cross-border terrorism
- Urban terrorism
- Lone-wolf attacks
- Cyber warfare & disinformation
Recent examples:
- 2025 Pahalgam attack
- Blast near Delhi’s Red Fort
Impact:
- Higher defence spending
- Lower investor confidence
- Diversion from development priorities

What is Geoeconomic Confrontation?

Strategic use of economic tools to advance geopolitical goals
Instruments:
- Sanctions
- Trade controls
- Investment restrictions
- Technology bans
- Subsidies & currency measures
Examples:
- US tariff impositions
- China’s critical mineral export bans
Consequences:
- Erosion of multilateralism
- Supply chain disruptions
- Economic downturns
- Conflict escalation

Way Forward for India (Policy Measures)

Strengthen Economic Resilience

Boost domestic manufacturing:
- Make in India
- PLI schemes
Diversify trade via FTAs
Maintain strong forex buffers

Treat Inequality as a Macro-Risk

Formalisation & income security:
- PM Jan-Dhan Yojana
- Ayushman Bharat

Counter Hybrid Threats

Whole-of-government approach
Strengthen:
- Multi-Agency Centre
- Cyber & financial surveillance (PMLA, 2002)
- National Security Strategy

Protect Information Integrity

FACT principle – Election Commission of India
IT Rules, 2021
Institutionalised fact-checking
Digital literacy (PM-DISHA)

Embed Climate Resilience

National Action Plan on Climate Change
Mission LiFE
National Disaster Management Plan
Climate-resilient infrastructure under Gati Shakti
Urban reforms via Smart Cities Mission

About World Economic Forum

Founded: 1971
Founder: Klaus Schwab
Headquarters: Geneva, Switzerland
Nature: International public–private cooperation body
Known for:
- Davos Annual Meeting
- Global Risks Report
- Global Competitiveness Report
- Global Gender Gap Report
- Energy Transition Index