Cost of living crisis biggest short-term risk; sustainable climate action long-term: WEF

The cost of living crisis is the biggest shortterm risk the world is facing while the failure of climate mitigation and climate adaptation is the largest longterm concern the World Economic Forum said on WednesdayReleasing its annual Global Risks report in London ahead of its Davos summit next week the WEF also said geopolitical rivalries and inwardlooking stances will heighten economic constraints and further exacerbate both short and longterm risksThe Global Risks 2023 report drawing on views of over 1200 experts policymakers and industry leaders from across the world also urged countries to work together to avoid resource rivalriesConflict and geoeconomic tensions have triggered a series of deeply interconnected global risks the report saidThese include energy and food supply crunches which are likely to persist for the next two years and strong increases in the cost of living and debt servicingAt the same time these crises risk undermining efforts to tackle longerterm risks notably those related to climate change biodiversity and investment in human capitalAlso Read WEF Davos summit to call on world leaders to address eco energy food crisesThe report said the window for action on the most serious longterm threats is closing rapidly and concerted collective action is needed before risks reach a tipping pointProduced in partnership with Marsh McLennan and Zurich Insurance Group the report painted a picture of the global risks landscape that is both new and eerily familiar as the world faces many preexisting risks that previously appeared to be recedingNoting that the global pandemic and war in Europe have brought energy inflation food and security crises back to the fore the report said these create followon risks that will dominate the next two yearsThose include the risk of recession growing debt distress a continued cost of living crisis polarised societies enabled by disinformation and misinformation a hiatus on rapid climate action and zerosum geoeconomic warfareFailure to mitigate and adapt to climate change natural disasters biodiversity loss and environmental degradation represent five of the top 10 risks with biodiversity loss seen as one of the most rapidly deteriorating global risks over the next decadeIn parallel crisesdriven leadership and geopolitical rivalries risk creating societal distress at an unprecedented level as investments in health education and economic development disappear further eroding social cohesionFinally rising rivalries risk not only growing geoeconomic weaponisation but also remilitarisation especially through new technologies and rogue actors the WEF saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever