Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

Davos: cost of living biggest risk to world economy

Open-access content Tuesday 17th January 2023 — updated 10.56am, Wednesday 18th January 2023
web_Checking-the-bill_credit_iStock-1386010022.jpg

The cost-of-living crisis poses the biggest threat to the global economy, according to the World Economic Forum (WEF).

Its Global Risks Report 2023, published ahead of this week’s annual WEF meeting in Davos, predicts that the energy and food supply crunches, which are likely to persist for the next two years, will drive major rises in the cost of living and debt servicing. These crises are in danger of undermining efforts to tackle longer-term risks such as climate change, biodiversity and investment in human capital, it warns.

The research, based on the views of around 1,200 global risk experts, policymakers and industry leaders, 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”.

It states that Covid and the Ukraine war have brought energy, inflation, food and security crises back to the fore, leading to follow-on risks of recession, growing debt distress, a deepening cost-of-living crisis, polarised societies beset by disinformation and misinformation, a hiatus on rapid climate action, and geo-economic warfare.

Unless the world starts to co-operate more effectively on climate mitigation and climate adaptation, this will lead to continued global warming and ecological breakdown in the next 10 years, the report warns. Crises-driven leadership and geopolitical rivalries risk “creating societal distress at an unprecedented level, as investments in health, education and economic development disappear, further eroding social cohesion”.

Image credit | iStock

You may also be interested in...

web_job-apply-now-button_credit_iStock-1146311268.jpg

ESG drives boom in insurance jobs

The jobs market in the UK’s insurance sector is booming, according to the latest research.
Tuesday 17th January 2023
Open-access content
web_Mortality-increase_credit_iStock-1448484347.jpg

Mortality rise – impact on pensions

The number of deaths in England and Wales last year was the highest it has been since 1993 (excluding the pandemic).
Tuesday 17th January 2023
Open-access content
web_Mature-man-reading-newspaper-Paris_credit_iStock-541137440.jpg

France to raise retirement age to 64

In a major reform to the pension system, the French government is proposing to raise the legal retirement age by two years to 64 by 2030.
Tuesday 17th January 2023
Open-access content
web_Falling-oil_credit_iStock-1451643752.jpg

Fossil fuel finance crisis fears

A future financial crisis caused by stranded fossil fuel assets will lead to millions of job losses across the world and leave the UK economy in tatters, a study warns.
Tuesday 17th January 2023
Open-access content
web_Businessperson-seeking-help_credit_Zenzen_shutterstock_2030129723.jpg

‘Solvency II reforms risk GB failure’

The government’s overhaul of insurance rules has increased the risk of corporate failures that will ultimately impact on public finances, MPs have been told.
Monday 23rd January 2023
Open-access content
web_Insolvency-concept_credit_SkazovD_shutterstock_1774886192.jpg

Sharp rise in corporate insolvencies

The number of corporate insolvencies in England and Wales last month was 76% higher than before the pandemic.
Monday 23rd January 2023
Open-access content
Also filed in
News
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ