The world economy may be in for some shocks this year because of a potential US recession, record-setting oil prices and food shortages, warns a report by the World Economic Forum. Worries about terrorism, disease, and natural disasters have taken a back seat to world business leaders' concerns about an economic implosion. Slower growth in China and Middle East volatility are also on the watch list this year.
There are "few reasons to believe that energy prices will fall” in the long term, the report warns. In the event of a US recession, "economists are divided on whether domestic-led growth in Asian markets can drive the global economy," add the authors. In addition, "the resilience of the worlds food system will be severely tested in the next few years."