The top five forces influencing the global economy, according to Ray Dalio.

• Ray Dalio, a U.S. billionaire, identified the top five driving forces shaping the global economy.
• The founder of Bridgewater Associates identified key factors that are interconnected and cyclical.

Ray Dalio, a billionaire from the U.S., identified the top five driving forces of the global economy.

At the Milken Institute's Asia Summit in Singapore, Bridgewater Associates founder stated that the five factors are interconnected and cyclical. Dalio made his remarks on Wednesday before the U.S. Federal Reserve's interest rate decision.

1. Debt, money and the economic cycle

Despite the uncertainty surrounding the Fed's actions at its upcoming meeting, Dalio expressed concerns about managing the country's debt.

What will be the impact of a Fed interest rate change on the debt and how will it be managed?

The Federal Reserve has maintained its benchmark rates at their highest level in 23 years, resulting in the government allocating $1.049 trillion for debt service, which is a 30% increase from the previous year. This is part of the anticipated total of $1.158 trillion in payments for the entire year.

"How is the value of it perceived as another man's debts or assets? What is its significance as a storehold of wealth? These are pressing questions that need to be addressed," he posed to the audience.

2. Internal order and disorder

Dalio stated that the second issue in U.S. politics before the election is the matter of internal order and chaos.

The wealth and value disparities between the right and left have resulted in irreconcilable differences, which threaten the orderly transition of power.

A CNBC Fed Survey released Tuesday revealed that Vice President Kamala Harris is now viewed as more likely to win the 2024 election than former President Donald Trump for the first time.

The candidates discussed various topics including abortion rights, tariffs, and other policy proposals during the debate last week.

Regardless of who is in the White House, the president's economic policy has minimal effect on the overall health of the US economy.

3. Great power conflicts

Dalio identified the relationship between the U.S. and China as his third concern, which falls under the category of geopolitics.

The relationship between the U.S. and China is characterized by various ongoing conflicts, including territorial disputes in the South China Sea, Taiwan's political standing, and economic sanctions.

"Probably, there's a fear of war that will hinder mutually assured destruction. However, it's chaos," he later emphasized, without specifying a particular trigger.

4. 'Acts of nature'

War is not the biggest threat to humanity and society historically; acts of nature have been.

Dalio observed that natural disasters, including droughts, floods, and pandemics, have resulted in the highest number of deaths and caused significant changes in both domestic and international orders.

The World Economic Forum states that the climate crisis causes a 12% decrease in global GDP for every 1°C increase in temperature.

5. Technology

The billionaire stated that technology will be "fantastic" if one adopts and invests in it appropriately.

He stated that the potential benefits of technology's impact on productivity are enormous, as it leads to the creation of unicorn companies and improves the lives of a small percentage of the population.

He added that whoever dominates the technology battle will ultimately prevail in the military conflict.

Dalio concluded that the "downside surprises outweigh the upside surprises," he stated.