Experts and Specialists Identify Key Post-Covid-19 Fears: Recession, Job Loss, Other Epidemics, New Economic Protection Policy
Geneva, Switzerland, May 19, 2020: A global report published by the World Economic Forum today entitled “The risks of the spread of the Covid virus-19: preliminary expectations and their implications” concluded that the world will witness during the next 18 months economic hardship and social discontent, unless the efforts of leaders, business sector and decision makers are united To manage the consequences of the Corona Virus pandemic. As the world’s economies resume business, a real opportunity looms for better levels of social equality and sustainability, opening the door to a new and more prosperous era.
The report, issued by the World Economic Forum in partnership with the “Marsh and McLennan Companies” and “Zurich Insurance Group”, is based on the views and opinions of about 350 specialists and experts in this field who have conducted a prospective study for the next 18 months and identify the most prominent concerns according to the possibility of their occurrence and their impact on the world and its economies. The report shows that the immediate economic repercussions of the Covid-19 pandemic dominate corporate expectations regarding future risks. This ranges from a long-term economic recession to the weak financial position of many major economies, tighter restrictions on import and supply chains, the movement of people across borders, and the collapse of major emerging markets.
While examining the interconnections between these risks, the report calls on world leaders to take actions that address the many future challenges, including the climate crisis, geopolitical turmoil, high levels of inequality, pressures on the mental health of society, and gaps in the governance of the use of technology and health systems under constant pressure. .
These long-term risks will have serious impacts on societies, the environment and modern technology governance systems, which underlines the calls made by the Global Risk Report, released in January 2020.
A group of stakeholders indicated in the report issued in January of this year that environmental risks are among the five largest global threats to the world over the next decade, and the report also warned of overburdening health care systems.
The report’s latest updates provided a preliminary scenario that included a number of familiar risks, which may increase as a result of the current crisis, in addition to a number of new risks that have emerged recently. Two-thirds of the participants indicated that the long-term global recession represents the most important sources of concern for the business community, while half of the respondents said that bankruptcies, business combinations, and the inability of some sectors to regain their vitality, and the impact of supply chains are major sources of concern for them.
With the acceleration of automation of the sectors of the economy imposed by the spread of the epidemic, cyber attacks and cyber fraud are emerging as major threats, according to half of the participants; The breakdown of networks and IT systems is another major concern, adding to geopolitical turmoil and the potential for increased restrictions on the movement of people and goods.
A second report, entitled “Challenges and Opportunities in a Post-Coved-19 World,” focused on the insights and analysis provided by decision makers, scientists and researchers with the aim of identifying opportunities that can be built upon to shape a more prosperous, fair and sustainable world.
Commenting on this, Saadia Zahidi, Head of Society and Economy and Director General of the World Economic Forum, said: “The current crisis has caused devastating effects on the lives and livelihoods of many, and an economic crisis has arisen because of it, which have far-reaching effects, as well as revealed many of the existing shortcomings, and therefore the The task of leaders in all sectors is to confront the direct effects of the epidemic, to build bridges of cooperation and to be keen to have the flexibility to stop the risks demonstrated by the epidemic and prepare to face the risks that have not yet emerged, because of this crisis we now have a unique opportunity to do things disruptively We build better, more sustainable, resilient and inclusive economies. ”
Peter Jaeger, chief risk officer for the Zurich Insurance Group, said: “The spread of the Covid-19 virus has demonstrated the absolute necessity to focus on risks, foremost among which are climate change issues. In our endeavor to rebuild and strengthen our economies, changes in work methodologies, and the general trends in travel, mobility and consumption issues have provided an opportunity to create new tools and methods to reduce carbon emissions and achieve a safer future. ”
“This pandemic will have far-reaching effects, with high levels of unemployment and its impact on the level of consumer confidence, inequality and well-being, and the challenges facing social protection systems, as well as significant pressures on employment and the education sector, which have resulted in more than 1.6 billion students losing their education, Let’s face the risk of losing another generation. The decisions taken now will guide how to direct risks or opportunities. ”
John Doyle, Marsh CEO and CEO, said: “Prior to the spread of the Covid-19 virus, institutions faced a range of large and complex global risks, from cyber risks to supply chains, as well as employee welfare and health, which entices business sectors to re-examine the structures and approaches they were They previously depended on it. In order to create conditions and conditions for a faster recovery and a more flexible future, both governments and the private sector must work together more effectively, and alongside major investments aimed at improving health systems, infrastructure and technology, it must be one of the most important outcomes of this crisis, that societies become more Resilience and resilience to future epidemics and other major shocks. ”
“Covid-19 Virus Outbreak Risks Report: Provides a comprehensive view of the challenges and opportunities for the post-Covid-19 virus, as this global report was developed with great support by the World Economic Forum’s Global Risk Advisory Council, and with the support of strategic partners They are the Marsh and McLennan Companies Group and the Zurich Insurance Group.