WEF Head Warns of Three 'Bubbles' Threatening Global Economy

The global economy may be on the verge of new financial instability due to three “bubbles” simultaneously inflating in the markets. This was stated by the President of the World Economic Forum (WEF), Børge Brende, speaking in Brazil’s financial center, São Paulo. This is reported by UNN, with reference to Reuters

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After a sharp decline in technology stocks worldwide, Brende urged governments and investors to closely monitor market trends.

We can observe bubbles forming. One is the cryptocurrency bubble, the second is artificial intelligence, and the third is the debt bubble.

he said.

According to the WEF president, government debt in many countries has reached its highest level since 1945, which creates additional risks for global financial stability.

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Artificial intelligence, which has become the main driver of stock market growth, can at the same time become a source of social challenges.

In large cities, where there are many back offices with office workers who are easier to replace with this artificial intelligence, a “rust belt” may appear.

Brende warned.

However, he emphasized that technological changes also have a positive side.

We also know from history that technological change over time leads to increased productivity, and productivity is the only way to increase prosperity over time. Then you can pay people better wages, and you will have more prosperity in society.

Brende concluded.

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