At the same time, a wide range of connected risks are ever present
The interconnected nature of the modern global economy presents a combination of potential downside risks that are a concern for executives.
Slowing economic activity is viewed as the greatest external risk to the growth plans of many companies. Respondents believe the most likely cause of a slowdown in growth is from tariff and trade disputes undermining carefully calibrated supply chains that have been built up over many years.
These trade disputes are often grounded in wider geopolitical tensions that have built up over the past decade. These disputes have the potential to impede the cross-border trade that has powered the economic expansion in the post-GFC period.
Similarly, a reduction in liquidity in credit markets is strongly influenced by fears over a breakdown in the globalized trading system.
Companies should evaluate how each of these interconnected issues may impact their growth agenda. Building agility and having the ability to pivot quickly as circumstances demand is key.