New Delhi, Jan. 29 -- The Economic Survey 2026, released on Thursday, flags a growing and deeply concerning vulnerability in the global economic system in the light of rising geopolitical risks and economic turmoil. While global growth and trade have held up better than expected so far, the Survey cautions that resilience may be deceptive, with negative effects expected to play out with a lag.

The Survey warns of three possible scenarios playing out in the financial markets, including a low-probability crisis far worse than the 2008 global financial crisis (GFC).

The Survey noted that geopolitical competition has intensified, the security environment in Europe has become increasingly complex, financial vulnerabilities associated with le...