The world faces mounting challenges in 2025, according to the World Economic Forum’s Global Risks Report 2025. From escalating geopolitical tensions and climate crises to the rise of disinformation, the report paints a stark picture of the far-reaching risks confronting economies, governments, and societies in both the short and long term.
At the forefront of immediate risks are armed conflicts and geopolitical strife. The war in Ukraine remains a destabilising force, disrupting global energy and food supplies. Meanwhile, tensions in the Taiwan Strait and the Middle East are identified as potential flashpoints, adding to global uncertainty.
Henk Volberda, professor of strategy and innovation at the University of Amsterdam, described the findings as “worrying” but struck a cautiously optimistic tone. “The report reflects the challenges we see globally. Yet, if nations unite and commit to stronger cooperation—particularly within Europe—we can mitigate these risks,” said Volberda, who also serves as director of the Amsterdam Centre for Business Innovation and contributed to the WEF’s risk survey.
Global pessimism grows
The mood among experts surveyed for the report is increasingly pessimistic. More than a third anticipate a “global disaster” within the next two years, while nearly two-thirds foresee such a scenario unfolding within the next decade.
The report warns of a world shifting toward a multipolar and fragmented order, as traditional power structures give way to a more complex web of alliances and rivalries. Geopolitical tensions are disrupting trade routes, limiting access to essential commodities, and straining global supply chains.
This fragmentation has prompted many nations to prioritise regional partnerships and onshoring production to reduce dependencies. While this strategy enhances resilience, it risks inflating costs and curbing economic growth.
Geopolitical and economic upheaval
“Systematic shifts in geopolitics, climate change, technological advances, and demographic trends are forcing countries to adapt more rapidly to an evolving global landscape,” the report notes.
The transition from a Western-dominated order to a decentralised, multipolar system complicates international cooperation, exacerbating political and economic uncertainty.
The report, presented this week in Davos, stresses the need for innovative strategies and strong leadership to navigate an increasingly fractured world.
Climate crisis looms
Over the next decade, environmental challenges take centre stage. Climate change remains a critical concern, with worsening water scarcity, rising temperatures, and more frequent extreme weather events disproportionately affecting vulnerable regions.
Water scarcity, in particular, threatens agricultural production and industrial activity, while the transition to renewable energy is straining energy security. Policymakers face calls to accelerate investment in sustainable infrastructure despite economic pressures.
The report is unequivocal: current efforts to address climate change fall woefully short. Failure to act will trigger tighter regulations and escalate financial burdens for businesses and governments alike.
The disinformation dilemma
The report also highlights the pernicious effects of disinformation, describing it as a critical threat to societal cohesion and technological systems. The rapid spread of false information, often amplified by artificial intelligence, is eroding trust in institutions and fuelling political polarisation, particularly in regions grappling with social unrest and weak governance.
Cyber security, too, is a growing concern. Financial institutions, public services, and critical infrastructure are increasingly targeted by sophisticated attacks. While international cooperation is vital to counter these risks, progress remains frustratingly slow.
As the world gathers in Davos to discuss these existential threats, the WEF’s message is clear: bold, collaborative action is essential to prevent these risks from spiralling into global crises.