World Economic Forum Releases Global Risks Report

January 17, 2025

Recently, the World Economic Forum (WEF) released its Global Risks Report. This report precedes the WEF annual meeting in Davos, focusing on the need for global cooperation to tackle environmental challenges. The report notes rise in the frequency and cost of extreme weather events, which are affecting numerous countries worldwide.

Global Risks Overview

The report categorises risks into economic, environmental, geopolitical, societal, and technological domains. It assesses these risks over short (1-2 years) and long-term (10 years) horizons.

Short-Term Risks

For 2025-2027, extreme weather events rank as the second most severe global risk. They are now among the top five risks in 28 countries, up from 24. The United States faces challenges, particularly from wildfires in Los Angeles, projected to incur losses exceeding $200 billion.

Impact on Countries

Twelve countries consider extreme weather among their top three short-term risks. Countries like the Dominican Republic, Oman, and Bangladesh rank these events first or second. Some nations, including Malawi and Mauritius, have seen a rise in the severity of these risks.

Climate Change Drivers

Climate change influences multiple global risks, including involuntary migration, which ranks as the eighth most severe short-term risk. The World Meteorological Organization reported 2024 as the warmest year recorded, exacerbating extreme weather impacts.

Environmental Risks

Biodiversity loss, ecosystem collapse, and pollution are among the top ten long-term risks. These interconnected challenges threaten global ecosystems and human health, necessitating urgent action.

Pollution Threats

Pollution, ranked tenth in long-term risks, is driven by unsustainable practices. It threatens air, water, and land quality, contributing to public health issues such as cardiovascular diseases and cancers. Current green initiatives often overlook pollution mitigation.

Recommendations

The report stresses the need for coordinated global action to address interconnected crises, including climate change and pollution. Without comprehensive strategies, the risks to ecosystems and human health will continue to escalate.

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