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Inflation, economic downturn BD's major future challenges

Says WEF in Global Risks Report 2025


FE REPORT | January 16, 2025 00:00:00


Inflation and economic downturn will remain the two major economic challenges for Bangladesh in the coming days, according to the World Economic Forum (WEF).

The three other issues would be extreme weather events like floods and heat waves, pollution, and unemployment or lack of economic opportunity, it said in a latest report published on Wednesday.

Headquartered in Switzerland's Geneva, the WEF presented the top five risks of each country surveyed in the report titled "Global Risks Report 2025".

The report did not elaborate on country-specific information. It analysed global risks through three timeframes to support decision-makers in balancing the current crises and longer-term priorities.

At the country level, pollution ranks among the top three risks in 10 countries, including Malta, Azerbaijan, Ghana, and Kosovo, said the report.

"Particularly in densely populated countries, such as Bangladesh and India, pollution has become one of the most critical challenges to tackle," said the report.

According to the WEF, the global top 10 risks mentioned by respondents are state-based armed conflict, extreme weather events, geo-economic confrontation, misinformation and disinformation, societal polarisation, economic downturn, critical change to earth systems, lack of economic opportunity or unemployment, erosion of human rights, and inequality.

The report said state-based armed conflict emerges as the top immediate risk for 2025, identified by nearly a quarter of respondents, reflecting heightened geopolitical tensions and fragmentation globally.

Misinformation and disinformation lead the short-term risks and may fuel instability and undermine trust in governance, complicating the urgent need for cooperation to address shared crises, it said.

It added environmental risks dominate the 10-year horizon, led by extreme weather events, biodiversity loss, and ecosystem collapse.

The report, which draws on the views of over 900 global risk experts, policy-makers, and industry leaders surveyed in September and October 2024, paints a stark picture of the decade ahead.

The 2024 edition of the report mentioned six risks for Bangladesh, including energy supply shortage, inflation, economic downturn, inequality, public debt, and unemployment.

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