The confidence deficit continues worldwide with international experts remaining pessimistic about the state of the global economy and global governance over the next year, according to the World Economic Forum’s (WEF) second quarterly Global Confidence Index released November 16, 2011.
The index, however, showed that there is higher optimism for global cooperation to address these risks.
According to the WEF, over 1,000 global experts from the public and private sectors were sent the survey for the Global Confidence Index – a joint initiative of the World Economic Forum’s Risk Response Network and Global Agenda Councils.
“Among the respondents, 70% remain pessimistic about the global economic outlook, the same number as last quarter. Confidence in global governance also remains low this quarter, with a consistent 60% of respondents signalling little trust in political leadership to deal with global risks,” said the WEF in a statement.
The experts were drawn from businesses, governments, international organizations and academia who are Members of the Forum’s Network of Global Agenda Councils.
It adds that “One-third of the respondents expressed confidence in the state of global cooperation, compared with one-fifth three months ago. However, concern about a major societal disruption being likely or very likely to occur over the next 12 months has grown from 50% to 60% this quarter.”
The WEF says the Global Confidence Index is the only research initiative of its kind that targets such a large group of international experts who focus on monitoring key trends, identifying global risks and mapping their interlinkages.
Commenting on the index Lee Howell, the WEF Managing Director and head of the Forum’s Risk Response Network said “Looking at the European situation, it seems clear that optimism in the global economy will return when structural economic challenges are met with credible political solutions.”
By Ekow Quandzie