The right word to describe the current period of multiple convergent crises surrounding the global economy is a “transition,” and action by central banks in tandem with the resilience of labor markets and the re-balancing of supply chains will be among the factors deciding what kind of economic order this transition will result in, World Economic Forum (WEF) Managing Director Mirek Dusek told Anadolu Agency in an interview.
Dusek’s remarks came ahead of the WEF’s Annual Meeting 2023 which will take place from Jan. 16-20 in Davos, Switzerland with the theme “Cooperation in a Fragmented World.”
“The WEF’s Annual Meeting 2023 in Davos will convene against the backdrop of a challenging economic outlook, and the program will reflect that reality in focusing on the dual imperatives of making the right decisions for economies, companies and communities to get through these complex times while simultaneously maintaining the ability to make major investments in the future,” he said.
The global economy has been under pressure due to multiple crises involving food, energy supply security, the cost of living, high inflation and the climate.
Supply shortages in energy markets have been reaching record levels for more than a year globally, while Russia’s war on Ukraine has deepened the problems in the supply and demand balance, leading to further skyrocketing prices in energy markets, particularly for natural gas.
Dutch Title Transfer Facility (TTF) natural gas prices had skyrocketed to €342 ($364) per megawatt-hour as of Aug. 26, 2022, a dramatic rise from the €30/MWh level a year earlier.
After sharp increases during the last year, prices had fallen to €69/MWh as of Jan. 6 thanks to a milder winter and high storage levels in Europe.
The price increases in food and energy markets are the main drivers of the decades-high inflation around the world.
According to Dusek, the multiple convergent crises with interconnected causes are affecting millions worldwide, especially those living in the most vulnerable regions.
“Just as the causes of these crises are interconnected, so too are their solutions, and we must converge on identifying and acting on measures that will not only mitigate the risk of such crises moving forward, but even more important, enable us to articulate and implement a new growth, jobs and security agenda for the future,” he said.
Read the full story on Anadolu Agency
