Insights on global challenges of 2025
Published: 05:03 PM,Mar 16,2025 | EDITED : 09:03 PM,Mar 16,2025
The global landscape is fractured and fragmented by geopolitical, environmental, societal, and technological dynamism and disruptions. The increasingly interrelated and non-linear complexities pose a grave challenge to the sustainability and resilience of global supply chains. The role of global supply chains as a fulcrum of trade stands at a juncture of jeopardy as the fundamental values of trust, predictability and dependability erode with escalating cross-border challenges and weakening political relationships. Though some risks are less prominent, the economic, societal and geopolitical interconnectedness cannot be dismissed. As we march forward into 2025, the ripple effects of these changes are unfolding. Drawing from the reports of the World Economic Forum, the United Nations and other global institutions, some insights into the world's most pressing and significant challenges in 2025 will create a sense of urgency and awareness among various world stakeholders.
Risk 1: Geopolitical tensions and state-based armed conflict are among the most severe challenges in the foreseeable future. The ongoing conflicts in Ukraine, Russia, Palestine, Israel and Sudan are potent for escalation and destabilisation of regional and international contexts. State-based armed conflict also has the potential to disrupt trade routes and regional supply chain networks and derail global stability. This represents a paradigm shift in international risk assessment. Military conflict threatens international stability and human welfare. Geopolitical relationships are being shaped and redefined by raising geopolitical tensions. The geopolitical tensions have ripple effect on diplomatic relations, trade networks and security arrangements worldwide. Increasing trade restrictions and retaliatory protectionist policies are medium-term barriers to global economic growth.
Risk 2: Intensifying environmental challenges is the second significant risk the world will face in 2025. Climate change's frequency and severity are catastrophic and affect critical infrastructure, logistics and manufacturing. Weather challenges would harm the earth's ecosystem and biodiversity. Climate change has been identified as a challenge that “no economy or individual” can escape. By 2050, 216 million people will have to relocate within their countries due to worsening weather conditions. Research indicates a 50 per cent probability that global warming will exceed 3.5 degrees Celsius by 2100. Environmental degradation will endanger food security, water sources and human health.
Risk 3: Misinformation and disinformation are significant risks that erode trust and complicate decision-making. Emerging technologies like artificial intelligence may amplify misinformation, which poses another challenge that threatens information integrity.
Risk 4: Societal polarisation is one of the immediate global risks that will fragment societies and dilute social cohesion and consensus. Polarisation is driven by misinformation that will hamper the effective functioning of democratic institutions and destabilise society. Societal fractures can lead to social instability, contributing to political and geostrategic volatility. Societies experiencing demographic changes are more susceptible to these challenges.
Risk 5: Lack of economic opportunity and unemployment are other significant risks that could hamper inclusive growth and disrupt labour markets. The accelerated speed of technological advancement and automation is recalibrating and transforming businesses and creating both opportunities and challenges. According to the World Economic Forum’s Future of Jobs Report 2025, economic pressures are the key drivers of change in labour markets.
Risk 6: The demographic patterns and shifts reflect overpopulation in emerging economies and aging populations in advanced countries but create distinct yet connected implications for societies and ecology. These demographic shifts profoundly impact labour markets, social support systems, migration patterns and political stability. Adapting to these changes requires innovative work, education, healthcare and inter-generational equity approaches.
In conclusion, it is imperative to reiterate that addressing these interconnected challenges requires unprecedented global collective action across sectors and borders through innovation, adaptability and peace. The challenges we face in 2025 are deep-rooted and interconnected and can redefine societies, economies and our fragile relationship with nature. New collective thinking is urgently needed to mitigate these global challenges and achieve sustainable growth.
The writer is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.
Risk 1: Geopolitical tensions and state-based armed conflict are among the most severe challenges in the foreseeable future. The ongoing conflicts in Ukraine, Russia, Palestine, Israel and Sudan are potent for escalation and destabilisation of regional and international contexts. State-based armed conflict also has the potential to disrupt trade routes and regional supply chain networks and derail global stability. This represents a paradigm shift in international risk assessment. Military conflict threatens international stability and human welfare. Geopolitical relationships are being shaped and redefined by raising geopolitical tensions. The geopolitical tensions have ripple effect on diplomatic relations, trade networks and security arrangements worldwide. Increasing trade restrictions and retaliatory protectionist policies are medium-term barriers to global economic growth.
Risk 2: Intensifying environmental challenges is the second significant risk the world will face in 2025. Climate change's frequency and severity are catastrophic and affect critical infrastructure, logistics and manufacturing. Weather challenges would harm the earth's ecosystem and biodiversity. Climate change has been identified as a challenge that “no economy or individual” can escape. By 2050, 216 million people will have to relocate within their countries due to worsening weather conditions. Research indicates a 50 per cent probability that global warming will exceed 3.5 degrees Celsius by 2100. Environmental degradation will endanger food security, water sources and human health.
Risk 3: Misinformation and disinformation are significant risks that erode trust and complicate decision-making. Emerging technologies like artificial intelligence may amplify misinformation, which poses another challenge that threatens information integrity.
Risk 4: Societal polarisation is one of the immediate global risks that will fragment societies and dilute social cohesion and consensus. Polarisation is driven by misinformation that will hamper the effective functioning of democratic institutions and destabilise society. Societal fractures can lead to social instability, contributing to political and geostrategic volatility. Societies experiencing demographic changes are more susceptible to these challenges.
Risk 5: Lack of economic opportunity and unemployment are other significant risks that could hamper inclusive growth and disrupt labour markets. The accelerated speed of technological advancement and automation is recalibrating and transforming businesses and creating both opportunities and challenges. According to the World Economic Forum’s Future of Jobs Report 2025, economic pressures are the key drivers of change in labour markets.
Risk 6: The demographic patterns and shifts reflect overpopulation in emerging economies and aging populations in advanced countries but create distinct yet connected implications for societies and ecology. These demographic shifts profoundly impact labour markets, social support systems, migration patterns and political stability. Adapting to these changes requires innovative work, education, healthcare and inter-generational equity approaches.
In conclusion, it is imperative to reiterate that addressing these interconnected challenges requires unprecedented global collective action across sectors and borders through innovation, adaptability and peace. The challenges we face in 2025 are deep-rooted and interconnected and can redefine societies, economies and our fragile relationship with nature. New collective thinking is urgently needed to mitigate these global challenges and achieve sustainable growth.
The writer is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.