CURRENT AFFAIRS

Detailed explanation-1: -Building on the most severe risks expected to impact in 2023 – including “Energy supply crisis”, “Rising inflation” and “Food supply crisis” – a global Cost-of-living crisis is already being felt.

Detailed explanation-2: -The Political Risk Report 2022, developed by Marsh, focuses on 3 environments-oceans, minerals and space. The growing demand for access to the oceans’ resources, strategically important minerals, and the ever-more-crowded, loosely regulated arena of space all increase political risk.

Detailed explanation-3: -The geopolitical risk (GPR) index spikes around the two world wars, at the beginning of the Korean War, during the Cuban Missile Crisis, and after 9/11. Higher geopolitical risk foreshadows lower investment and employment and is associated with higher disaster probability and larger downside risks.

Detailed explanation-4: -What are the geopolitical risks in 2023? The war in Ukraine and US-China tensions pose the most significant risks to the global economy in 2023 and beyond. Russia’s invasion of Ukraine has rapidly inflated energy and food prices, leading to cost issues for businesses and soaring living costs for consumers in 2022.