The World Economic Forum (WEF) has identified inflation and rising geoeconomic confrontation as key risks facing economies in the near term, warning of continued pressure on growth, trade, and investment.

In its 21st edition of the Global Risks Report 2026, published yesterday, the WEF said inflation remains among the most serious challenges, reflecting persistent price pressures affecting households and businesses. The report also warned of risks of economic downturn and stagflation, where slow growth coincides with high inflation.

Debt vulnerabilities across corporate, public, and household sectors were highlighted as another concern, with the WEF noting that elevated debt levels could intensify financial stress during periods of economic uncertainty.

The report said geoeconomic confrontation — including the growing use of sanctions, tariffs, and tighter investment screening — has emerged as the top global risk for 2026. It has risen sharply in the rankings as trade and economic risks accelerate in the short term.

According to the WEF, global trade and value chains are experiencing their most severe disruption in decades amid heightened trade policy uncertainty. In extreme scenarios, governments could impose broad-based tariffs on multiple trading partners, leading to a significant contraction in global trade.

The report also noted a weakening of global trade governance, with fewer disputes being brought to the World Trade Organisation after its appellate system was disabled.

The findings are based on the Global Risks Perception Survey, which gathered views from more than 1,300 experts worldwide. Half of the respondents expect a turbulent global outlook, while only 1% foresee calm conditions.