WEF REPORT: Geopolitics replaces inflation as the top worry for central banks and sovereign wealth

Wednesday 07 August 2024

WEF REPORT: Geopolitics replaces inflation as the top worry for central banks and sovereign wealth funds
Syndicated by GEÓVoice PR Wire – Gibraltar 
GEÓPoliticalMatters.com/PRVoice
Daily Geopolitical PR

Geopolitical concerns have overtaken inflation as the primary risk factor for central banks and sovereign wealth funds, according to a new survey.

It finds that 53% of central banks plan to increase reserves, while 52% aim to diversify holdings.

The World Economic Forum’s Global Risks Report 2024 indicates a pessimistic outlook with more than 60% of people expecting stormy or turbulent times in the next decade.

In a year when more than 4 billion people are eligible to vote in elections globally, geopolitical concerns have emerged as the primary worry for central banks and sovereign wealth funds.

An increasingly polarized and fragmented political landscape has overtaken inflation as the top risk factor for these institutions, find a new a survey by asset management company Invesco. The trends outlined in the Global Sovereign Asset Management Study 2024, reflect an ever more complex and uncertain world for central banks and sovereign wealth funds to navigate.

Geopolitical tensions are seen as the main risk to global economic growth in the coming year for 83% of respondents, surpassing concerns about high inflation and monetary tightening (73%). Looking ahead to the next decade, 86% of participants identify rising geopolitical fragmentation and protectionism as the most significant long-term threat.

The survey says ongoing conflicts in Ukraine and the Middle East, tensions between major powers including the US and China and the uncertainty surrounding the outcome of so many elections in 2024 are all driving this increased focus on geopolitical risks. Learn More/…