Cost-of-living, debt crises top immediate risk for Davos elite

Bloomberg

The threat of recession, the cost-of-living crisis and mounting debt distress will dominate the global economy in the next two years as it struggles to move on from the pandemic and war in Ukraine, according to a survey by the World Economic Forum.
Its Global Risks Report, an annual poll of 1,200 government, business and civil society professionals compiled by the Geneva-based foundation, suggests there will be little respite as countries grapple with “energy, inflation, food and security crises.”
Almost seven in 10 respondents reckon the near term will be characterized by volatile economies and multiple shocks, while a fifth of them fear “catastrophic outcomes” within a decade.
The most immediate risk is the cost-of-living crisis, while the biggest long-term threats remain climate-related, the survey found. Saadia Zahidi, WEF managing director, is concerned that the world might be entering a “vicious cycle.”
“Very few leaders in today’s generation have been through these kind of traditional risks around food and energy, while at the same time battling what’s coming up in terms of debt, what’s coming up in terms of climate,” she told Francine Lacqua on Bloomberg Television. “We’re going to need a sort of new type of leadership that is much more agile.”
Next week, the WEF holds its annual meetings in Davos, Switzerland, where the business, political and academic elite will share insights and start framing plans for the year ahead.