Gloomy outlook for global recovery: WEF

The outlook for global recovery is gloomy, according to the World Economic Forum on Tuesday (January 11).

In a poll of nearly 1,000 business, government and academic leaders, only one in 10 expects the global recovery to accelerate over the next three years.

Climate Change was seen as the number one danger by respondents.

Extreme weather was considered the world's biggest risk in the short term and a failure of climate action in the medium and long term.

Peter Giger, Zurich insurance Chief Risk Officer said the global health crisis has affected the world's ability to address these environmental challenges.

"Reducing the attention and focus needed for governments to take effective and quick climate action, halving greenhouse gas emissions in the next decade and achieving the net-zero transition by 2050; or, risking massive disruption from the consequences of a materially warmer climate."

And that was not the only fallout.

Saadia Zahidi, the WEF's managing director said mental health deterioration was among the top five areas that worsened the most over the course of the last two years.

"Governments have a balancing act to work with. In the short term, there are a number of economic transitions that they also need to manage...The second area in which they are having to do a balancing act is around jobs and social cohesion."

The WEF's report also highlights four areas of emerging risks, including cybersecurity, a disorderly climate transition, migration pressures and competition in space.

The prospect of 70,000 satellite launches in coming decades, in addition to space tourism and a lack of regulation, raises risks of collisions and increasing debris in space.

The report is published each year ahead of the annual WEF meeting in Davos.

But this year's event was postponed until mid-2022 due to the spread of the Omicron variant.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting