Recession still ranked as top risk by global executives

An economic downturn, inflation, energy supply shortages and extreme weather events have been identified as most significant risks to Australia and other G20 nations, according to new data from the World Economic Forum (WEF) release by Zurich Financial Services Australia.

The results, which were based on an executive opinion survey conducted in collaboration with Zurich and gathered the views of more than 11,000 business leaders from over 110 countries, have also listed the household debt as one of the key risks.

At the same time, the societal threats included the erosion of social cohesion and wellbeing as top-five risk factors while technological risks, including threats relating to cyber and artificial intelligence (AI), appeared only three time in the G20 top-five rankings.

Commenting on the results, Justin Delaney, Chief Executive Officer, Zurich Australia & New Zealand, said: “As with previous years, many of the risks forecast in the last survey have already come to fruition. Considering the top ranked risks in this year’s survey, it is unsurprising to see economic threats causing the most concern. Likewise, energy supply shortages and extreme weather are both key and intertwined risks for Australia in the coming years.

“In a broader context, the findings highlight strikingly common concerns between both advanced economies and emerging markets. This year’s survey highlights how, even before the current conflict in the Middle East, increasingly interconnected economic and societal risks were perceived as the biggest concerns across the G20 with a backdrop of escalating global political tensions and persistent inflation in many major economies.”

The Executive Opinion Survey was conducted by the WEF’s Centre for the New Economy and Society between April and August 2023.