The Top 5 Global Risks for 2023

4. Erosion of social cohesion and societal polarisation

According to the World Economic Forum, the erosion of social cohesion and societal polarisation has become an increasingly stronger risk in the last few years as communities are becoming more and more fractured. The resulting lack of social stability and individual well-being is a major threat to the global economy which is potentially exacerbated by political instability and debt crises. This widening gap in beliefs between people on a majority of topics including religion, climate, economy and gender, among various others, has impacted elections all across the world, from the U.S. to Europe to Asia, and has resulted in major demonstrations even in traditionally autocratic countries such as Iran and China. This social turmoil has actually increased the percentage of autocratic regimes in the world. This has long term economic consequences for such regimes, including their stability and outlook in both the short and long term future.