The Telegraph Lists The Five Biggest Risks To The Global Economy
Casually glancing at what’s happening around the world, it’s not difficult to pinpoint one or two aspects that will prove difficult for major global players, whether companies or countries.
Things are changing.
Global ideas of unity were once the order of the day, but have now violently snapped back to more conservative ideas.
One group who knows about all it is none other than the World Economic Forum. Set to meet in Davos, Switzerland, next week, they highlighted the issues that are expected to shape global risks over the next decade in an annual assessment of global threats, explains The Telegraph.
Listed below, if things aren’t sorted out, we might be in a little bit of shit.
Raising global growth
It has been eight years since the “global financial crisis” yet the economy is still as flat as ever:
The WEF said “many countries” were gripped by a “mood of economic malaise”, which had contributed to “anti-establishment, populist politics and a backlash against globalisation”, despite “unprecedented levels of peace and global prosperity”.
It highlighted that raising growth was only part of the solution. Healing “deeper fractures in our political economy” was also vital to resolve a perception of a “lack of solidarity between those at the top of national income and wealth distributions and those further down”.
If it’s one thing 2oceansvibe readers should be well versed in, it’s cybercrime – after all, not only is it a growing threat to business everywhere, but the rapid pace of technological change “has raised questions about the future of the labour market as well as rising cyber threats”:
John Drzik, president of global risk at Marsh, the professional services firm, said technological development had also led to more sophisticated cyber attacks.
Last year, cyber risks were cited as the biggest risk to North America. This year, it was top in several countries, including Germany, Japan, Switzerland, Singapore, Malaysia and the United Arab Emirates, said Mr Drzik.
“Populism” is likely to be the word most thrown around during the WEF’s conference.
“Increasing polarisation” was ranked by the WEF as the third most important trend for the next 10 years and was cited by almost a third of respondents.
The Forum said “decades of rapid social and economic change” had “widened generation gaps in values, disrupted traditional patterns of affiliation and community, and eroded the support of mainstream political parties”.
Donald Trump’s victory in the US Presidential election reflected the demographic and cultural divide between generations more than issues over income inequality, according to research cited by the WEF.
The withdrawal by Russia, South Africa, Burundi and Gambia from the International Criminal Court, as well as China’s “rejection of a 497-page international ruling tribunal on its territorial claims in the South China Sea,” are all moves the WEF sees as a “worrying sign of deteriorating commitment to global cooperation”:
Scrapping the mutual accountability and respect for common norms created by these mechanisms was a dangerous path to follow, the WEF warned.
It said Mr Trump’s threat to tear up Iran’s nuclear deal and the Paris Climate Change agreement also had significant implications.
The scale of environmental risks are being cited to occur with more devastating consequences than ever before, and it’s not just the Paris agreement that policymakers are worried about:
Richard Samans, a member of the managing board of the WEF, highlighted research by the World Bank that warned that water scarcity could cost some regions up to 6pc of gross domestic product (GDP) by 2050, spur migration, and spark conflict if not addressed.
What do you think is going to happen to us if this water situation becomes even more dire? Apparently we only have three months to figure that out.
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