The World Economic Forum publishes the Global Risk Report 2023 every year , where it identifies the main global risks in the short and long term. How are we doing in 2023? Main conclusions of the 2023 Global Risks Report In the next two years, risks are dominated by the cost of living, while the failure of climate action will dominate the next decade. The coming decade will be marked by environmental and social crises, motivated by fundamental geographic and economic changes. In the next two years, the “cost of living crisis” appears to be the most important danger, and will intensify in the short term. One of the most rapidly deteriorating global risks to nations over the next decade is biodiversity loss and ecosystem collapse. Six environmental threats are included among the top ten dangers that will occur in the next ten years. capital that are the shareholders An economic era ends. The next one will generate greater risks of stagnation, divergence and anxiety. The economic consequences of the COVID-19 pandemic and the war in Ukraine have led to high inflation, a rapid normalization of monetary policies, and the beginning of a period of low growth and low investment.
In the next two years, governments and central banks could face inflationary pressures, even more so given the possibility of a prolonged war in Ukraine, as well as the continued bottlenecks due to the persistence of Covid19 and the economic war. that stimulate the decoupling of supply chains. The probability of liquidity shocks occurring will increase if monetary and fiscal policies are not adequately adjusted, suggesting a prolongation over time of the economic Georgia Phone Number List recession and global indebtedness. Prolonged supply-driven inflation can lead to stagflation, which could have serious socioeconomic repercussions due to its connection to public debt levels that have been high in the past. Over the next ten years, global economic fragmentation, geopolitical tensions and a more unstable recovery could lead to widespread debt distress. The end of the era of low interest rates will have significant implications for governments, businesses and individuals, even if some economies experience a softer than expected economic landing.
The most vulnerable strata of society will be most affected by the secondary effects, which could include increased poverty, violent and violent protests, political instability and even the collapse of the state. Additionally, it will impact middle-income households, leading to discontent, political polarization and calls for broader social protection in nations around the world. Governments will continue to struggle to maintain a dangerous balance between protecting large numbers of citizens from a cost-of-living crisis and paying down debt, amid an increasingly urgent problem of transitioning to new energy systems and less stability. in the geopolitical environment. The possible new consequence could be the growing disparity between rich and poor countries, as well as the first setbacks in human progress in decades. Geopolitical fragmentation will lead to geoeconomic war and increase the risk of conflicts between multiple territories. The growing rivalry between world powers is leading to an increasing frequency of economic conflicts.