Global Development

WEF: Biggest risk to economy is cost-of-living crisis and social unrest

It's little wonder the World Economic Forum's latest report, based on the insights of more than 1,200 experts, finds the biggest short-term risk to the world economy is today's globalized cost-of-living crisis and widespread social unrest.

, and John Heilprin

January 11, 2023 . 10:55 PM

3 min read

A homeless person's tent along the K Street lobby and advocacy corridor in Washington, D.C. (AN/J. Heilprin)

Food and energy prices weaponized by the war in Ukraine. Compounding crises from health and economic aftereffects of the COVID-19 pandemic. Inflation soaring to levels unseen in decades.

It's little wonder the World Economic Forum's Global Risks Report on Wednesday, based on more than 1,200 experts' insights, finds the biggest short-term risk to the world economy is today's globalized cost-of-living crisis and widespread social unrest.

The WEF report called this decade the turbulent 20s and the "age of the polycrisis" as nations grapple with persistent economic and supply shocks stemming from geopolitical conflicts, inflation and monetary policy tightening – and as governments, companies and individuals are left to contend with wider inequality. In the long run, climate change is the biggest economic challenge.