In its annual Global Risks report, the WEF warned that protests across the southern eurozone flared up by anti-austerity measures already in place, is likely to be a catalyst to more protests and rock the global financial system in 2013.

The report also warned that financial stress coupled with runaway climate change is likely to create a ‘perfect global storm’.

This is the second year in a row that the WEF’s global risks survey has highlighted a bleak backdrop as income disparity continues to threaten global stability.

It said: “On the economic front, global resilience is being tested by bold monetary and austere fiscal policies.

“On the environmental front, the Earth’s resilience is being tested by rising global temperatures and extreme weather events that are likely to become more frequent and severe.

“A sudden and massive collapse on one front is certain to doom the other’s chance of developing an effective, long-term solution.”

The survey of more than 1,000 experts from across industry, government and academia also found the risk that would cause the most damage – were it to happen – is major systemic financial failure.

Other key risks in 2013 identified by respondents were rising national government debt, water stress and mismanagement of population ageing.