Geoeconomic Conflict Tops Global Risk List for 2026, Cyber Insecurity Major Concern for India: WEF Report
The World Economic Forum released its Global Risks Report on Wednesday, January 14. This important document highlights geoeconomic conflict as the number one risk facing the world in 2026. Cyber insecurity emerges as a significant concern specifically for India.
Global Risk Landscape Shifts Dramatically
Geoeconomic confrontation jumped eight positions to become the most significant global risk for the two-year period. Misinformation and disinformation follow closely in second place. Societal polarization, extreme weather events, and interstate conflict complete the top five global concerns.
Looking ahead ten years, extreme weather events pose the greatest danger. Biodiversity loss and ecosystem collapse rank second. These represent critical changes to Earth's systems. Other major long-term risks include misinformation and disinformation. Negative impacts from artificial intelligence technologies also feature prominently.
Five Key Risks Identified for India
The report specifically examines risks facing India. It identifies five main areas of concern:
- Cyber insecurity
- Income inequality
- Inadequate public services and social protections
- Economic downturn
- State-based armed conflict
The WEF warns that critical infrastructure has become a new arena for global conflict. Governments controlling rivers and reservoirs might divert water to their own populations. This action could harm neighboring countries. Water security grows increasingly important worldwide.
Potential flashpoints over the next decade could include the Indus River Basin between India and Pakistan. Afghanistan's construction of the Qosh Tepa Canal presents another concern. This project could reduce the flow of the Amu Darya River into Turkmenistan and Uzbekistan.
India's UPI Receives Special Mention
The report highlights India's Unified Payments Interface as a positive example. It describes UPI as "a good example" for governments to adopt. Enhancing banking system attractiveness can increase resilience. This resilience helps against potential global debt situations or broader financial crises.
Deepfakes Threaten Democratic Processes
Misinformation and disinformation present specific challenges through deepfakes. These digitally altered videos, images, and audio recordings have begun proliferating. They exert greater influence on politics and electoral processes.
Weaponizing deepfakes can undermine trust in democratic institutions. This contributes to increased political polarization. It potentially leads to incitement of political violence or social upheaval.
"Recent elections in the United States, Ireland, the Netherlands, Pakistan, Japan, India and Argentina have all had to contend with such fabricated content on social media," the report states. This content depicts fictional events or discredits political candidates. It blurs the line between fact and fiction.
Pessimistic Outlook for Coming Decade
Looking ahead ten years, 57 percent of respondents expect a turbulent or stormy world. Thirty-two percent anticipate unsettled conditions. Only 10 percent predict stability. A mere 1 percent expect calm.
WEF President and CEO Borge Brende commented on the shifting landscape. "A new competitive order is taking shape as major powers seek to secure their spheres of interest," he said. "This shifting landscape, where cooperation looks markedly different than it did yesterday, reflects a pragmatic reality: collaborative approaches and the spirit of dialogue remain essential."
He added that the Annual Meeting in Davos will serve as a vital platform. It will help understand risks and opportunities. It will build bridges needed to address these challenges.
Geopolitical and Economic Concerns Intensify
Sixty-eight percent of respondents expect a 'multipolar or fragmented order' over the next decade. This represents a four-point increase from last year.
Economic risks experience the most significant collective rise in the two-year outlook. Both economic downturn and inflation risks jumped eight places. They now rank 11th and 21st respectively. The risk of an asset bubble burst increased seven positions to 18th.
The report warns that rising debt concerns and potential asset bubbles could trigger new volatility. This comes amid ongoing geoeconomic tensions.
AI Risks Show Clear Progression
Misinformation and disinformation ranked second on the two-year outlook. Cybersecurity placed sixth globally.
Negative outcomes from artificial intelligence showed the clearest progression. They rose from 30th in the two-year outlook to 5th in the 10-year outlook. This reflects growing concerns about impacts on labor markets, societies, and security.
Societal polarization ranked 4th in 2026 and 3rd by 2028. Inequality maintained 7th position in both the two-year and 10-year outlooks.
Environmental Risks Shift in Priority
Short-term concerns have overshadowed long-term environmental goals. Extreme weather moved down from 2nd to 4th place in the two-year forecast. Pollution decreased from 6th to 9th. Critical changes to Earth systems and biodiversity loss dropped seven and five positions respectively.
Over the 10-year period, environmental risks continue to be most severe. Three-quarters of respondents anticipated a turbulent or stormy environmental outlook. This represents the most negative perception among all categories examined in the report.
