Panel warns about risk of global economic, environmental meltdown

The dual risks of an economic and environmental meltdown could combine in the near future to form a “perfect global storm,” the World Economic Forum warned Tuesday in its annual report on global risks.

This year's report by a panel of more than 1,000 experts from around the world concluded that “severe income disparity” was the most likely global risk over the next decade, with “major systemic financial failure” the risk with the highest impact if it were to manifest itself. “Chronic fiscal imbalances” and “rising greenhouse gas emissions” were rated the second and third most-likely risks.

“Continued stress on the global economic system is positioned to absorb the attention of leaders for the foreseeable future,” the report says. “Meanwhile, the Earth’s environmental system is simultaneously coming under increasing stress.

“Future simultaneous shocks to both systems could trigger the 'perfect global storm,' with potentially insurmountable consequences.”

The Davos, Switzerland-based World Economic Forum is an international nonprofit organization that serves as a platform for business, political and civil society leaders to meet and develop a global agenda.