World Economic Forum Report: Global Risks Intensify by 2026, Trade Contraction Likely to Become Norm
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
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Source: CNBC
- Rising Global Economic Risks: The World Economic Forum's Global Risks Report reveals that nearly half of business leaders expect turbulence over the next two years, with only 1% anticipating calm, indicating significant uncertainty in the global economy.
- Escalating Geoeconomic Confrontation: The report highlights that geoeconomic confrontation has surged to the top of business concerns, potentially leading to substantial contractions in global trade, which could adversely affect economic growth and market stability.
- AI Risks on the Rise: The potential adverse outcomes of artificial intelligence have surged to fifth place among short-term risks, with implications for increased income inequality and societal divides, which could negatively impact consumer spending and economic growth.
- Significant Extreme Weather Impact: Global insured losses from natural disasters are projected to reach $107 billion by 2025, reflecting a trend of increasing frequency and intensity of extreme weather events, placing immense pressure on the insurance market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
