The cost of living crisis is the biggest short-term risk, while the failure of climate mitigation and climate adaptation are the largest long-term risk to the global economy.
— World Economic Forum (@wef) January 11, 2023
This is according to World Economic Global Risk report for 2023.
The report notes that conflicts and geopolitical tensions have resulted in increased global risks in the form of energy shortages and food supply pressures. The report has warned that these risks are expected to persist over the next two years.
Managing Director at World Economic Forum, Saadia Zahidi, presented the findings of the Global Risk report in a virtual launch of the report.
“We’re looking at a situation where things are eerily familiar, to some extent, a lot of older risks that have come to the fore. This that we think back to the beginning of this decade we were on a trajectory to solve, dealing with hunger, dealing with the energy crisis. These were the things that world was moving towards solving through the sustainable development goal. Quite a different picture today with things like reimerging, health crisis, food crisis, and energy crisis and the cost of living.”
Energy supplies, living costs identified as some of the risks for 2023: