economics

By Edmund Conway, Economics Editor
Last Updated: 3:03am GMT 11/01/2007

Countries and businesses around the world have become dangerously complacent about the risks facing them, a key authority has warned, saying that the vast majority of economic threats have worsened in the past year.

The World Economic Forum said that, among other risks, there was now a chance of between 10pc and 20pc that the house price and debt bubble which has built up around the world - including the UK - bursts, causing more than $1,000bn damage.

advertisementIn its annual Global Risks Report, the forum gave warning that the world's recent golden stretch of growth might have given people a false sense of security. It urged governments to follow business's lead and appoint a national risk officer to make contingency plans in case of economic, environmental or terrorist disaster.