Without global leaders working together to manage fallout from the coronavirus pandemic, economic distress and social discontent will rise over the next year and a half, according to a survey from the World Economic Forum.
The survey of nearly 350 risk professionals released Tuesday by the Geneva-based forum found that most were concerned about the economic impact following the outbreak. Two-thirds of respondents said a prolonged global recession is their top concern for business, while more than half said bankruptcies and industry consolidation was highest on the list.
"The crisis has devastated lives and livelihoods. It has triggered an economic crisis with far-reaching implications and revealed the inadequacies of the past," said Saadia Zahidi, managing director of the World Economic Forum. "Leaders must work with each other and with all sectors of society to tackle emerging known risks and build resilience against the unknown."
Around the world, 500 million people are at risk of falling into poverty from the outbreak, and 80% of students worldwide were out of school in March, according to the report. In addition, world output is expected to slump 3%, and foreign direct investment is slated to fall between 30% and 40%.
The implications of high unemployment and continued lockdowns could have a devastating effect on health — for every 1% increase in unemployment, there is a 2% increase in chronic illness, the report showed. And, 34% of adults are feeling adverse effects on their mental health during lockdown, according to the data.
Here are the 10 most likely global fallout scenarios that risk professionals see stemming from the pandemic in the next year and a half, ranked from most to least.
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