Thursday, February 7, 2013

World Economic Forum 2013 Global Risks Report. It's back to the drawing board

The World Economic Forum has released its 2013 Global Risks report. It includes the analysis of the top global specialists in areas of academia, government and industry on the risks business leaders face over the next decade.

Fifty risks were identified and placed in five categories ranging from environmental to health. Bad news is, the persistent wealth gap and government spending is still impacting the global environment's ability to heal. Add to that the financial crisis the global community is still dealing with after the 2008 real estate fallout.

Using statistics provided by the International Monetary Fund, the report is predicting slow economic growth over the next few years. Advanced economies will experience a small margin of growth ranging between 1.3 percent and 2.6 percent. Emerging economies are expected to see little or no growth.

In summary, the predictions are dire. Unless political and economic changes happen and happen fast, we are potentially looking at another decade of weak returns, unchanged unemployment rates, and a financial mess that will continue to impact business profits and our pockets.

Let's hope our politicians take the report seriously and pass sound policies when they next meet to discuss the budget in the near future. There are other loose ends to consider, such as market fraud, antiquated tax policies, and overall growth. As evidenced by the 2008 crisis, the global economy is fragile and vulnerable, and in need of good leadership.

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