German Chancellor Angela Merkel announced in October that she is to retire from politics and her party continues to cede voters to the left and right, meanwhile an increasingly unpopular French President Emmanuel Macron is dealing with ongoing and often violent protests on the streets of Paris.
John Drzik, president of Global Risk and Digital at risk management firm Marsh, told CNBC that cybercrime, critical infrastructure and environmental threats, as well as changes in geopolitics, are among the biggest risks facing the world right now.
“The rise of nationalist agendas around the world is creating friction among states as well as weakening multilateral institutions,” he told CNBC’s Joumanna Bercetche.
“It’s not just in the U.S., here in the U.K. you have Brexit, but in Brazil, Italy, Austria and Hungary there are lots of populist political figures who are getting elected and changing the agenda to be more protectionist and more nationalist and, as a result, weakening the multilateral bonds that were there and that’s expected to continue into 2019.”
The global economy is not looking too great either as trade concerns continue to concern business and rattle financial markets.
The International Monetary Fund (IMF) cited trade tensions when it downgraded its global growth forecast for 2019 last October. The IMF expects global growth of 3.7 percent in 2019, down 0.2 percentage points from an earlier forecast in its World Economic Outlook report.
The World Bank, meanwhile, sees global growth at 2.9 percent in 2019 amid tightening financial conditions. The European Commission is also downbeat about the region’s growth, forecasting a lackluster 2 percent growth in the EU in 2019.