Confidence 'lacking in global economy'
Geneva, September 21, 2011
There is very little confidence worldwide in the state of the global economy and in global governance over the next 12 months, according to the World Economic Forum’s Global Confidence Index.
Less than 10 per cent of the over 1,000 global experts from the public and private sectors who were surveyed, expressed confidence in the state of the global economy over the next 12 months and less than 10 per cent expressed confidence in the state of global governance.
One-half of the respondents are pessimistic about the global economic outlook and one-quarter anticipates there will be an economic disruption during the next year.
One in four say there is a lack of global leadership to deal with problems during this time and a majority fear a geopolitical as well as societal upheaval, according to the quarterly Global Confidence Index.
Perspectives outside the private sector were the most bearish with almost 54 per cent of the respondents indicating that they are not confident in the state of the global economy; just over 40 per cent expressed little confidence in the economy in the next 12 months, ther report said.
All respondents are members of the World Economic Forum’s Network of Global Agenda Councils. This is the only research initiative of its kind that targets such a unique and large group of international experts who focus on monitoring key trends, identifying global risk and mapping their interlinkages, it said.
“Lack of confidence in the state of the global economy is not surprising, but the corresponding lack of confidence in global governance and global cooperation is far more troubling,” noted Lee Howell, forum managing director who heads the Forum’s Risk Response Network.
“Such a pessimistic economic prognosis shows the great need for visionary leaders and collaborative leadership, particularly when 60 per cent of respondents doubt the ability of leaders to cooperate globally.”
This new quarterly survey is an ongoing joint initiative with the Risk Response Network which is responsible for developing the Global Risk Report published each January by the World Economic Forum. - TradeArabia News Service