Cost of living crisis to be world’s biggest risk: WEF survey

The biggest challenges of the next two years will be the skyrocketing cost of living fueled by the ukrainian war and the economic reopening after the pandemic, according to a survey by the World Economic Forum (WEF) that meets every year in Davos (Switzerland).

The cost of living crisis pushes millions of people to extreme poverty and fuels social tensions in many regions of the planet.

For respondents, it poses a greater risk than natural disasters, extreme weather events and conflicts.

“Geoeconomic tensions and conflicts have unleashed a series of deeply interconnected global risks,” says a statement launching the report. Global Risks 2023a survey conducted among 1,200 experts and policy makers.

Those risks include “pressures on energy and food supplies, which are expected to persist for the next two years, and sharp increases from the cost of living crisis and the cost of debt” due to rising energy prices. energy and interest rates.

The price increases “undermine efforts to deal with other long-term threats, primarily the climate change” and the loss of biodiversity, says the statement, published before the start of the main annual meeting of the WEF, which will be held in the Swiss ski resort of Davos from January 16 to 20.

The report, prepared in collaboration with the insurance and risk management consultancy Marsh McLennan and the insurer Zurich Insurance Groupcalls for international cooperation in the face of the “rapid reduction” of opportunities.

“The pandemic world war and the war in Europe have once again brought the energy, inflation, food and security crises to the fore,” the statement stated, referring to the risk of “societies polarized by disinformation and misinformation” and “wars geoeconomics”.