World Economic Forum: Trade Will Keep Global Economy and Society on Track

WEF: heightened global risks. File Image / Pixabay.

The Covi-19 pandemic has hurt global economic growth and prompted a rise in global inequalities which means that future economic growth must be more inclusive, president of the World Economic Forum (WEF) Borge Brende said at the launch of the organisation's annual global risk assessment.

The report's authors outlined the key risks over a five-to-ten year time frame for the global economy, society and politics.

Carolina Klint from insurer Marsh said that businesses can expect to come under increased scrutiny as to how they operate.

Peter Giger of Zurich said the widening gap in digital literacy risks creating a digital underclass. He said that 85 million jobs are likely to be lost to automation in the next five years.

Guillaume Barthe-Dejean of SK Group agreed that the pandemic has exacerbated inequalities.

To mitigate such risks, the world will need to keep trade open.

"We know that trade and open borders are better for economies," WEF's Saadia Sahidi said.  A return to open trade will address global inequality, she added.

The panel were in agreement that the transition to a low-carbon energy economy should be accelerated. 

For Klint, this would be achieved through  "increased collaboration".

While the push against globalisation was visible before the pandemic hit, Barthe-Dejean said that economic regionalism may emerge as an attractive half-way house policy umbrella for states and governments as they try to row back against the rising tide of anti-globalisation sentiment.

WEF organises the annual global meeting of leaders and experts in the Swiss town of Davros.