London - Risk managers expect a prolonged
global recession as a result of the coronavirus pandemic, a
report by the World Economic Forum showed on Tuesday.
Two-thirds of the 347 respondents to the survey - carried
out in response to the outbreak - put a lengthy contraction in
the global economy top of their list of concerns for the next 18
months.
Half of risk managers expected bankruptcies and industry
consolidation, the failure of industries to recover and high
levels of unemployment, particularly among the young.
“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.
Environmental goals risk being discarded as a result of the
pandemic, the report said, but governments should try to carve
out a "green recovery".
"We now have a unique opportunity to use this crisis to do
things differently and build back better economies that are more
sustainable, resilient and inclusive," Zahidi said.
The report was compiled by the World Economic Forum’s Global
Risks Advisory Board together with Marsh & McLennan Companies
Inc and Zurich Insurance Group.
Risk managers were surveyed between April 1 and 13.