The global economy in 2019 is subject to large-scale risks
At the beginning of each year, global financial experts gather at the Davos forum. On the eve of the event, they make a list of risks that the global economy may face in the next 12 months. According to experts, the main problems of the world economy in 2019 are the threat of a trade war, fraudulent cyber activity, political instability and climate change.
What threatens the global economy in 2019?
The World Economic Forum in Davos (WEF) will begin on January 22 and last for 3 days. Experts invited to it already know that one of the main topics for discussion will be threats to the economy. They presented their assessments of potential problems in the 2019 Global Risk Report on WEF.
In the first place is the trade war of states. WEF President Borge Brende notes that if earlier economic policy made it possible for players to benefit, it is used now as a tool for strategic competition. He believes that partners are less willing to cooperate, and the pace of development of the world economy has reached a peak. In addition, the expert is disappointed that the trade is no longer the engine of progress.
Other threats include cyber attacks. Over the past year, many innovations have appeared on the market, artificial intelligence has been actively developing, and 5G networks promise to soon become a widespread phenomenon. This means that hackers, using them to commit a crime, will adopt new technologies. At risk are both ordinary consumers and the business sector. Theft of personal data, hacking bank accounts – these and other problems will probably have to be considered.
Business faces another phenomenon – work from home. According to research by analysts, in the US, more and more specialists from various fields prefer to work in this format. Unprotected Internet networks are easy money for digital intruders, and various smart gadgets become an entry point for an attack.
The problem of global climate change is also serious. This mainly concerns African states, where the lack of resources causes mass emigration, fueling internal conflicts and provoking wars. Searching better lives, people flee to Europe and the countries of America, which does not suit political power and causes discomfort to residents of states.
The geopolitical tension between countries is another threat to the global economy in 2019. The poisoning of Sergei Skrypal and his daughter Julia in Salisbury aggravated relations between Russia and Western countries, which resulted in the maintenance of new mutual sanctions. Virtually all WEF experts believe that in 2019 economic and political conflicts between major states only scale.
