Inflation, debt crisis biggest threats for Bangladesh in next two years – WEF

Rapid inflation, debt crisis, severe commodity price shocks, human-made environmental damage, and geopolitical contestation of resources are the top five risks for Bangladesh over the next two years, says the World Economic Forum’s latest Global Risks Report.

The World Economic Forum’s top business executives have identified managing inflation as a worldwide concern while terming ‘rapid and/or sustained inflation’ Risk 1 for 33 out of 121 economies surveyed for the next two years.

It was also highlighted as a top-five risk over the next two years in 89 of the countries surveyed in the EOS, a significant increase from 2021.

‘Risk 1’ indicates the most frequently selected risk in each economy.

“The inflation that we have seen due to the commodity price spike, and the support given in advanced economies to keep businesses afloat, it wasn’t perfect. Things look grim in the advanced economies, with fears of recession. But many small businesses and people stayed afloat,” said Saadia Zahidi, managing director of the WEF.

Most respondents to the 2022-2023 Global Risks Perception Survey (GRPS) chose ‘energy supply crisis’; ‘Cost-of-Living crisis’; ‘rising inflation’; ‘food supply crisis’ and ‘cyberattacks on critical infrastructure’ as among the top risks for 2023 with the greatest potential impact on a global scale.

Globally, the Cost of Living crisis is the biggest short-term risk while the failure of climate mitigation and climate adaptation is the largest long-term concern.

In this year’s GRPS, more than four in five respondents anticipated consistent volatility across economies and industries with multiple shocks accentuating divergent trajectories over the next two years.

These 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 servicing. At the same time, these crises risk undermining efforts to tackle longer-term risks, notably those related to climate change, biodiversity, and investment in human capital.

These are the findings of the Global Risks Report 2023, released today, which argues that the window for action on the most serious long-term threats is closing rapidly and concerted, collective action is needed before risks reach a tipping point.

(The Business Standard)

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