What are the major global threats facing society and the economy going forward?
The World Economic Forum released its 18th edition of the “Global risk report” identifying the most severe perceived risks to economies and societies over the next years. The report focuses on the “polycrisis”, a situation where different risks collide, and their interdependency is acutely felt. Cost of living crisis and its economic and social implications dominate the global risks ranking in the next two years, while climate action failure dominates the next decade in a context of international geoeconomic warfare.
Main takeaways of the report:
- Return of “older” risks which few of this generation’s business leaders and public policy-makers have experienced: For example high inflation scenarios, trade wars, capital outflows from emerging markets, widespread social unrest, geopolitical confrontation and the spectre of nuclear warfare.
- Cost of living crisis and its economic and social implications dominate global risks in the next two years while climate action failure dominates the next decade: Regarding other global risks “Biodiversity loss and ecosystem collapse” is viewed as one of the fastest deteriorating global risks over the next decade. Nine risks are featured in the top 10 rankings over both the short and the long term and two new entrants into the top rankings: “Widespread cybercrime and cyber insecurity” and “Large-scale involuntary migration”.
- Global risks ranked by severity over the short and long term:
- Top 10 risks over the next 2 years:
1. Cost-of-living crisis
2. Natural disasters and extreme weather events
3. Geoeconomic confrontation
4. Failure to mitigate climate change
5. Erosion of social cohesion and societal polarization
6. Large-scale environmental damage incidents
7. Failure of climate change adaptation
8. Widespread cybercrime and cyber insecurity
9. Natural resource crises
10. Large-scale involuntary migration
- Top 10 risks over the next 10 years:
1. Failure to mitigate climate change
2. Failure of climate-change adaptation
3. Natural disasters and extreme weather events
4. Biodiversity loss and ecosystem collapse
5. Large-scale involuntary migration
6. Natural resource crises
7. Erosion of social cohesion and societal polarization
8. Widespread cybercrime and cyber insecurity
9. Geoeconomic confrontation
10. Large-scale environmental damage incidents
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