WEF report sees purchasing power crisis and climate change as biggest global risks

A report by the World Economic Forum (WEF) states that the purchasing power crisis is the biggest global risk in the next two years. In the long term, climate change is the most worrying. The organisation's annual meeting in Davos, Switzerland, is set to take place next week.

WEF polled more than 1,200 politicians and people from business and civil society on what they assess as the biggest global risks. In the short term - the next two years - the purchasing power crisis emerges in the 'Global Risk Report' as the biggest challenge, followed by natural disasters and extreme weather events.

According to the report, the world will continue to face "persistent inflationary pressures" over the next two years, "not least given the possibility of a protracted war in Ukraine, bottlenecks caused by a lingering pandemic, and economic warfare that could disconnect supply chains."

In the long term, respondents are most concerned about the lack of decisive action to combat climate change, the prevalence of natural disasters and extreme weather events, and the loss of biodiversity and ecosystems. "The lack of deep, concerted progress on climate action has exposed the gap between what is scientifically needed and what is politically feasible," the WEF said.

The report calls for global cooperation. If governments fail to get the current crises under control, they risk creating "unprecedented" social unrest. The WEF also outlines the risk of a "polycrisis" - where several major challenges come together simultaneously and reinforce each other. Specifically, the organisation cites the risk of a shortage of raw materials and resources, including food, water and energy.

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