2025 Global Risks Report from the World Economic Forum (WEF)

The 2025 WEF Global Risks Report from the World Economic Forum (WEF) has been published ahead of its annual meeting in Davos, starting next week.

The report always makes interesting reading, although one can get lost in the detail.

Below is a quick summary of the main take-aways of the 2025 edition.

Top risks for the global economy in 2025

• 23%: State-based armed conflict is most likely to present a “material crisis on a global scale”.

• 14%: Climate change-led extreme weather events pose the greatest risk.

Biggest threats over the next 2 years until 2027

1. Misinformation and disinformation

2. Extreme weather events

3. State-based armed conflict

Outlook views until 2027

• 52% of respondents anticipate an “unsettled” global outlook over the next two years.

• 31% of respondents expect a “turbulent” backdrop.

• 5% worry that a “stormy outlook” is likely.

10-year horizon: Extreme weather continues to be classed as the top risk.

Other key findings

• Geo-economic confrontation is also a major concern, with the report emphasizing the risks associated with fragmented global trade and investment flows.  

• Erosion of social cohesion is a growing concern, with rising inequality and social polarization contributing to political instability and social unrest.

• A combined four percentage point increase from last year, indicating a heightened pessimistic outlook for the world to 2027.

Yet the WEF found that many large businesses are not prioritising environmental risk management in their strategies.

Corporations are far more likely to be preparing to address talent and labour shortages. Most are concerned about supply chain disruptions and more than one-quarter are preparing for disruptions to critical infrastructure, which can be caused by climate risks, but are not using environmental framing.