Brace for Impact: The Rising Risks for the Global Economy in 2025

**Geopolitical Tensions: A New Era of Instability** The geopolitical landscape is becoming increasingly complex, with tensions simmering across various regions. From the ongoing conflict in Eastern Europe to rising tensions in the South China Sea, these issues threaten to disrupt trade and economic stability. Economists warn that if these disputes escalate, they could lead to sanctions, supply chain disruptions, and decreased investor confidence. As central banks navigate a delicate balancing act of maintaining growth while managing inflation, any geopolitical flare-ups could significantly impact global markets. **Climate Change: An Economic Disruptor** Climate change is no longer just an environmental issue; it poses a significant risk to economic stability. Extreme weather events, from hurricanes to droughts, have far-reaching implications for agriculture, infrastructure, and energy supplies. The World Bank has projected that climate change could push over 100 million people back into poverty by 2030. As countries strive to implement green policies and transition to sustainable economies, the economic costs of inaction or slow adaptation could be immense, creating further uncertainty in the global economic landscape. **Technological Disruption: The Double-Edged Sword** While technological advancements have driven growth and innovation, they also carry inherent risks. The rapid pace of automation and artificial intelligence could displace millions of jobs, exacerbating income inequality and social unrest. Additionally, the cybersecurity landscape is evolving, with increasing threats to global financial systems. As businesses become more reliant on digital solutions, the potential for catastrophic data breaches or cyberattacks poses a serious threat to economic stability. Companies must prioritize cybersecurity to safeguard their operations and maintain consumer trust.