80% of Global Leaders Responded "Pessimistic About Economic Recovery Within 3 Years"

2022 World Economic Forum
Global Risks Report

Survey of 1,000 people in 124 countries
Only 10.7% Positive Outlook

Top 10 Global Risks Ahead
Half Related to Environment

[Asia Economy Reporter Cho Hyun-ui] It was found that only 1 out of 10 experts worldwide views the global outlook positively over the next three years. In contrast, 8 out of 10 responded pessimistically.

According to the 2022 Global Risks Report released by the World Economic Forum (WEF), which opened on the 17th (local time), over 1,000 experts in politics, economy, and society from 124 countries answered the question, "How do you view the global outlook for the next three years?" Only 10.7% responded that "global recovery will accelerate."

All other responses contained negative outlooks. The highest response at 41.8% was "Anxiety continues amid various unexpected events." Following that, 37.4% answered, "The gap between winners and losers widens amid divisions caused by the COVID-19 crisis," and 10.1% said, "A decisive tipping point steadily progresses as catastrophic outcomes increase."

Regarding the global outlook, 84.2% expressed concern. "Concerned" was the most common at 61.2%, followed by the more pessimistic "worried" at 23.0%. In contrast, only 12.1% answered "positive," and a mere 3.7% were "optimistic," which is a brighter outlook. The report warned, "The lack of positive outlooks can lead to a vicious cycle of disillusionment and social unrest."

Experts identified "failure to address climate change" as the top global risk facing the world over the next decade. Ranked second and third were "extreme weather events" and "loss of biodiversity," respectively.

Including the top three, half of the overall risks were environment-related. "Human environmental destruction" (7th) and "natural resource crisis" (8th) were also listed among the top 10 risks. Environmental risks were also identified as the greatest threats when divided into short-term (0-2 years), medium-term (2-5 years), and long-term (5-10 years) categories. Extreme weather events are expected to appear fastest within two years, while failure to address climate change is seen as a medium- and long-term threat.

However, global responses remain minimal. 68% of respondents said, "The current level of climate change response is still at an early stage." Additionally, 9% answered that "no action has even started."

Peak Geiger, Chief Risk Officer (CRO) of Zurich Insurance Group (ZIG), co-author of the report, stated, "The climate crisis is the greatest long-term risk humanity faces," urging, "Governments and companies worldwide must save the economy and people through innovative and decisive energy transitions."

Meanwhile, among the top 10 risks, the social sector was the next most frequent after the environment. "Weakening social cohesion," "livelihood crisis," and "pandemics" ranked 4th to 6th, respectively. The economic and geopolitical sectors each accounted for one risk. "Fiscal crisis" ranked 9th, and "geoeconomic confrontation" ranked 10th.

It was pointed out that growth disparities between developed and developing countries due to vaccine inequality could hinder joint responses to global issues like climate change. WEF Secretary-General Saadia Zahidi emphasized, "Since crises that cause conflicts are more concerning than ever, the international community must unite for recovery."