Page 9 - WEF Reoprt 2020

Preface

The 15 edition of the World Economic economies hold record high levels of debt
th
Forum’s Global Risks Report comes as and exhibit relatively low levels of growth.
long-mounting, interconnected risks are Ammunition to fight a potential recession
being felt. The global economy is faced is lacking, and there is a possibility of an
with a “synchronized slowdown”, the past extended low-growth period, akin to the
five years have been the warmest on 1970s, if lack of coordinated action continues.
record, and cyberattacks are expected to In addition, a potential decoupling of the
increase this year—all while citizens protest world’s largest economies, the United States
the political and economic conditions in and China, is cause for further concern. The
their countries and voice concerns about question for stakeholders—one that cannot
systems that exacerbate inequality. Indeed, be answered in the affirmative—is whether
the growing palpability of shared economic, in the face of a prolonged global slowdown
environmental and societal risks signals that we are positioned in a way that will foster
the horizon has shortened for preventing— resiliency and prosperity.
or even mitigating—some of the direst
consequences of global risks. It is sobering On the environment, we note with grave
that in the face of this development, when concern the consequences of continued
the challenges before us demand immediate environmental degradation, including
collective action, fractures within the global the record pace of species decline.
community appear to only be widening. Respondents to our Global Risks Perception
Survey are also sounding the alarm, ranking
Global commerce has historically been a pillar climate change and related environmental
and engine of growth—and a key tool for issues as the top five risks in terms of
lifting economies out of downturns—but as likelihood—the first time in the survey’s
we warn, significant restrictions were placed history that one category has occupied all
on global trade last year. This comes as G20 five of the top spots. But despite the need to

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