Global downturn risks becoming prolonged recession, WEF says

Bloomberg reports that according to the World Economic Forum, leaders need to do more to secure a quick and sustainable recovery for the global economy.

In a survey of almost 350 risk professionals, the Geneva-based group said that two-thirds identified a drawn-out downturn as the greatest risk now facing the world over the coming year and a half. The pandemic has already thrown the economy into its deepest recession since the Great Depression and provoked a massive monetary and fiscal response.

The resulting build-up of debt will likely burden government budgets and companies for years, the report said. A reduction in consumption, as well as changing production and competition patterns, could also hit businesses, and emerging economies could be submerged into deeper crisis, the report said.

High unemployment, especially among the young, a lack of progress in reducing carbon emissions and exacerbated inequalities are all possible side effects of the pandemic, too. Cyberattacks and data fraud are also major threats as the economy becomes further digitized, the report showed.