Major Risks Facing LatAm Countries, According to the World Economic Forum

Bloomberg Línea — The latest World Economic Forum’s (WEF) Annual Risk Report 2023 shows that cost-of-living issues are top of mind for global business leaders over the next two years. Looking 10 years ahead, the greatest fear concerns the lack of climate change mitigation, among other environmental concerns.

In a survey carried out among 12,000 global business leaders, the study identified the 32 greatest short- and long-term fears, reflecting economic, social, environmental, geopolitical and technological issues. Top five risks that each country will have to face in the coming years were also selected from the issues mentioned.

Based on these results, Bloomberg Línea compiled a list of the 5 major risks faced by each Latin American nation, according to the executives’ vision.

Argentina

1. Swift and/or sustained inflation
2. Debt crisis
3. Proliferation of illicit economic activity
4. Collapse of the State
5. Severe commodity supply crisis

Bolivia

1. Long-term economic stagnation
2. Digital inequality
3. Employment and livelihood crisis
4. Collapse of the State
5. Man-made environmental damage / Debt crisis / Erosion of social cohesion

Brasil

1. Swift and/or sustained inflation
2. Proliferation of illicit economic activity
3. Geo-economic confrontation
4. Severe shock to commodity prices
5. Employment and livelihood crisis

Chile

1. Swift and/or sustained inflation
2. Erosion of social cohesion
3. Proliferation of illicit economic activity
4. Severe commodity supply crisis
5. Collapse of the State

Colombia

1. Swift and/or sustained inflation
2. Digital inequality
3. Employment and livelihood crisis
4. Collapse of the State
5. Cost-of-living crisis

Costa Rica

1. Cost-of-living crisis
2. Debt crisis
3. Critical infrastructure failure
4. Swift and/or sustained inflation
5. Natural disasters and extreme weather events

Dominican Republic

1. Cost-of-living crisis
2. Debt crisis
3. Swift and/or sustained inflation
4. Natural disasters and extreme weather events
5. Severe commodity supply crisis

Ecuador

1. Prolonged economic stagnation
2. Digital inequality
3. Natural disasters and extreme weather events
4. Employment and livelihood crisis
5. Collapse of the State

El Salvador

1. Debt crisis
2. Collapse of the State
3. Cost-of-living crisis
4. Natural disasters and extreme weather events
5. Employment and livelihood crisis

Guatemala

1. Natural disasters and extreme weather events
2. Collapse of public services and infrastructure
3. Prolonged economic stagnation
4. Collapse of the State
5. Digital inequality

Honduras

1. Swift and/or sustained inflation
2. Natural disasters and extreme weather events
3. Collapse of the State
4. Employment and livelihood crisis
5. Cost-of-living crisis

Mexico

1. Swift and/or sustained inflation
2. Proliferation of illicit economic activity
3. Prolonged economic stagnation
4. Collapse of the State
5. Erosion of social cohesion

Panama

1. Employment and livelihood crisis
2. Debt crisis
3. Digital inequality
4. Cost-of-living crisis
5. Proliferation of illicit economic activity / Swift and/or sustained inflation

Paraguay

1. Prolonged economic stagnation
2. Collapse of public services and infrastructure
3. Digital inequality
4. Natural disasters and extreme weather events
5. Collapse of the State

Peru

1. Collapse of the State
2. Digital inequality
3. Swift and/or sustained inflation
4. Proliferation of illicit economic activity
5. Employment and livelihood crisis

Uruguay

1. Severe commodity supply crisis
2. Swift and/or sustained inflation
3. Prolonged economic stagnation
4. Cost-of-living crisis
5. Automation and displacement of jobs