Every year, on the eve of the Davos forum, its experts make a list of global risks. This year it is the threat of a full-scale trade war, growing political tensions, cyberattacks and climate change.
Experts of the world economic forum (WEF), which starts next week in Davos, called the main global risks to the world economy in 2019 the threat of a full-scale trade war and growing political tensions between the world powers. This follows from the WEF report on global risks 2019, prepared for the upcoming annual forum.
Cyberattacks and climate change are also high on the list of global threats. The conclusions are based on a survey of about 1 thousand government officials, scientists, businessmen who are engaged in the organization of the forum in Davos.
The report also states that global growth appears to have peaked. The international monetary Fund, citing rising trade barriers, lowered its global growth forecast for 2019 by 0.2% in October, driven by a slowdown in the US and Chinese economies. “We simply do not have the gunpowder to cope with the slowdown that can lead us to the current dynamics,” the WSJ quotes the words of the WEF President Borge Brende, which were made at the press conference.
In addition, WEF experts warn that economic policy, which once allowed rivals to benefit mutually in trade relations, is now “often seen as an instrument of strategic competition.” “Trade was the engine of progress,” Brende stressed. But now, he said, this trend is fading, so ” the coming months will be crucial to building confidence.” “The biggest risk is a lack of willingness to cooperate,” he said.
The world risk report 2019 was published against the backdrop of heightened geopolitical and geo-economic tensions. Last year was marked by the aggravation of relations between Russia and the West against the background of poisoning in Salisbury Sergey Skripal and his daughter Julia, which led to a new round of mutual sanctions. Also last year, a trade war broke out between the US and China. Nine out of ten WEF experts expect the aggravation of economic and political confrontations between the main powers in 2019.
The report of the WEF experts is intended to form the agenda of the upcoming event. The world economic forum will be held from 22 to 25 January in Davos.
Last year, experts of the Davos forum called the change in the markets, the populism of politicians and high expectations of technology as global risks.