Private credit, a fast-growing and highly opaque US lending segment, is driving up leverage in the financial system and concentrating economic activity within a small group of asset managers, with systemic risk. 

Global credit conditions are weakening as inflation persists, interest rates rise and growth slows.

The growing intersection of supply chains, connectivity and access to data is increasing the potential for significant cyberattacks, creating new risks for governments and businesses worldwide.

Global economic turbulence lies ahead, as growth slows and liquidity tightens. Colliding geopolitical interests, deepening societal fissures, digital disruption and climate risks will also grow in relevance.

Policy uncertainties around trade, unforeseen events like coronavirus outbreak, as well as long-term structural challenges pose credit risks to China, increasing credit differentiation between domestic regions and sectors.

Credit risks and elevated inflation amid a backdrop of tighter monetary policy are weighing on government finances, corporate performance and bank asset quality. Reduced liquidity and increased funding costs will crimp debt-servicing capacity.