Inflation and Rising Cost of Living Main Concerns for G20 Businesses, WEF Says

Economic worries prevail over other problems, since anti-Russian sanctions imposed by the West have led to major energy crises around the globe earlier this year.

Skyrocketing inflation and cost of living, as well as worsening debt crises will be key threats to business activity in the G20 countries for at least two years, according to the World Economic Forum data, published on Monday.

The Executive Opinion Survey conducted by the WEF's Center for the New Economy and Society asked over 12,000 business leaders from 122 economies around the globe, "which five risks are the most likely to pose the biggest threat to your country in the next two years?"

Among five categories - economic, geopolitical, environmental, societal, and technological - most of the respondents named inflation and debt crises (economic) and cost of living crisis (societal) as the most crucial problems.

Blue and red gas flames on a kitchen gas stove are pictured in Copenhagen, Denmark, on May 16, 2022.

© AFP 2023 / IDA MARIE ODGAARD

The possibility of a major geo-economic confrontation also worries businesses in the developed economies, while emerging market business leaders indicate that the lack of digital services remains a serious issue. Environmental problems were beaten to the bottom of the list, while cybersecurity issues did not make it into the top-10.

Europe and many other regions faced skyrocketing inflation this year, after Washington, London and Brussels imposed sanctions on Russia over its military operation in Ukraine. This decision exacerbated ongoing problems on the fuel market, resulting in a full-fledged fuel crisis, since the anti-Russia sanctions increased volatility in the market and damaged supply chains across the globe.

High fuel prices have come into public focus in the EU, Britain, and the US. Many European nations had to resort to energy contingency measures, while electricity bills have risen dramatically, since Russia was the number one fuel provider for the bloc.