November 06, World (LNW): The President of the World Economic Forum (WEF), Børge Brende, has cautioned that global markets could be heading towards three significant financial bubbles — in cryptocurrencies, artificial intelligence, and public debt — amid growing concern over recent turbulence in technology shares.
Speaking to journalists during a visit to São Paulo, Brazil’s financial capital, Brende noted that while investor confidence has remained strong for much of the year, current valuations in several sectors appear increasingly inflated.
“We may be on the verge of seeing three bubbles taking shape — one in the crypto market, another in artificial intelligence, and a third in the world’s mounting debt levels,” he said.
He further pointed out that government debt across many nations has now reached levels unseen since the end of the Second World War.
His remarks come after global technology stocks experienced sharp declines, prompting investors to reassess whether enthusiasm for innovations such as AI may have run ahead of fundamentals. Market experts, however, have urged restraint rather than alarm, emphasising that the recent corrections follow months of record-breaking highs driven by optimism about technological advances.
Brende acknowledged that artificial intelligence could revolutionise global productivity and unlock vast economic potential, but warned that the transition might bring social and employment challenges, particularly for office-based professionals.
“In a worst-case scenario, we could see new ‘rust belts’ forming in major urban centres where white-collar roles are most at risk from automation,” he explained, pointing to recent job reductions announced by large multinational corporations such as Amazon and Nestlé.
Nonetheless, Brende stressed that history shows technology-driven change ultimately fuels progress. “Every wave of innovation has disrupted employment patterns in the short term, but over time, rising productivity translates into broader prosperity,” he said. “Greater efficiency allows businesses to reward workers with higher wages and helps societies achieve more sustainable economic growth.”
