The World Economic Forum (WEF) has warned that the coming decade will be marked by extreme volatility and uncertainty, according to its Global Risks Report 2026, which was released recently.
The report is based on the insights of more than 1,300 experts from around the world and highlights several critical risks facing countries such as Sri Lanka.
According to the report, the main threats Sri Lanka is likely to face over the next two years include an economic recession, limited economic opportunities or rising unemployment, shortages of skilled labour and workforce availability, inflation, and a growing debt burden encompassing public, private, and household debt.
The report reveals that global debt has risen to US$251 trillion, accounting for 235% of global GDP. In this context, countries already burdened by high debt levels, including Sri Lanka, are expected to face greater challenges in attracting foreign investment and restructuring existing debts.
The WEF report also draws attention to increasing global pressure and debt crises, along with the growing threats posed by misinformation, technological vulnerabilities, and environmental risks.
According to the findings, 50% of surveyed experts believe the next two years will be extremely unstable or turbulent for the global economy. This figure is expected to rise to 57% over the next decade. Only 1% of respondents believe the world will experience a peaceful period.
The report notes a steady erosion of international cooperation and trust, with conflict increasingly replacing collaboration. About 68% of experts anticipate a shift towards a fragmented and competitive global governance system, replacing the previously unified global framework.
Geo-economic conflicts have been identified as the primary global risk for 2026, with 18% of respondents warning that such conflicts could escalate into a global crisis. Armed conflict between states is ranked as the second most significant risk.
The report also highlights that economic recession and inflation have risen by eight places in the global risk rankings. It warns that debt sustainability challenges and the potential bursting of economic bubbles could destabilize societies and businesses over the next two years—developments that would directly impact countries like Sri Lanka as they attempt to recover from ongoing debt crises.
The widening gap between the rich and the poor, or inequality, remains the most pressing global risk, according to the report. It notes that increasing tensions between elites and the general public, coupled with declining trust in political leadership, have created a widespread perception that citizens are excluded from key government decisions.
The spread of false information and misinformation is identified as the second most critical risk over the next two years, while cybersecurity threats rank sixth. The report further estimates that the negative consequences of artificial intelligence (AI) will become the fifth most significant global risk over the next decade.
Although environmental issues have received less immediate attention in the short term, the report predicts that extreme weather conditions will pose the greatest global threat over the next ten years. Approximately 75% of experts surveyed expressed a highly pessimistic outlook regarding environmental risks.
The report concludes by emphasizing a serious lack of confidence in the world’s ability to address shared challenges, such as climate change, global health threats, and economic stability, largely due to the increasing prioritization of national interests over collective global action.
