Global Risks Report 2026

Decline in health and well-being Lack of economic opportunity or unemployment Inequality Debt Economic downturn Inflation Asset bubble burst Societal polarization Insufficient public infrastructure and social protections Geoeconomic confrontation Involuntary migration or displacement Intrastate violence Crime and illicit economic activity Decline in health and well-being Lack of economic opportunity or unemployment Inequality Debt Economic downturn Inflation Asset bubble burst Societal polarization Insufficient public infrastructure and social protections Geoeconomic confrontation Involuntary migration or displacement Intrastate violence Crime and illicit economic activity Edges Relative influence High LowMediumRisk influenceNodesOverview High LowMediumRisk categories Economic Environmental Geopolitical Societal TechnologicalGlobal risks landscape: Economic downturn FIGURE 40 Source World Economic Forum Global Risks Perception Survey 2025-2026wealth. An Economic downturn would, according to the GRPS, have a range of consequences that are inherently societal in nature, including Inequality and Decline in health and well-being risks (Figure 40). Bubble economy? There is currently widespread concern around elevated equity prices for the largest technology companies, and 2025 saw periods of frenzied investor interest not only in artificial intelligence (AI)- related stocks, but also in sectors such as nuclear, quantum or rare earths. A sharp run-up in the prices of precious metals has raised concerns of bubble-like activity there, too. Some of these prices have since stabilized or corrected, but concerns about overvalued markets remain. Should the predictions of an asset bubble burst turn out to be true, the potential impacts can be significant. Global institutional and retail investors are heavily invested in US stock markets by historical standards, so the resulting potential impacts of a crash could be severe for the global economy;63 85% of global chief economists in September 2025 believe a financial shock would have wide-ranging systemic effects.64 If there were a downturn in US stock markets comparable to the 2000 dotcom bubble burst, the value of wealth destruction could be far greater given how high exposure is today, and the ensuing impacts on consumer demand could be crushing.65 The valuations of the largest US stocks are sustained in part by global passive inflows, including from pension funds that mechanically contribute savings towards retirement plans, often via index funds. The largest stocks in the index receive ever larger inflows, fuelling market concentration. This dynamic has been building for two decades. 66 If passive flows were finally to change direction, a self-reinforcing reverse dynamic could ensue. 67 Elyse Chia, Unsplash Global Risks Report 2026 43