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Monday, April 15, 2024

WEF warns of economic downturn, labour shortage risks in Sri Lanka

The latest Global Risks Report from the World Economic Forum (WEF) highlights economic downturn, labour shortage, and energy supply shortage as the top three risks facing Sri Lanka over the next two years.

Developed in collaboration with Zurich and Marsh McLennan, the report draws insights from nearly 1,500 global experts.

As per the 2024 report, there’s a predominantly negative outlook for the world in the coming years, with concerns anticipated to exacerbate over the next decade. Notably, economic downturn emerges as the primary risk for Sri Lanka, aligning with sentiments echoed in 102 other countries surveyed through the Global Risks Perception Survey (GRPS).

The WEF underscores the potential for miscalibration by central banks, governments, and companies amid divergent views about the future, which could deepen and prolong economic risks. While economic uncertainty is expected to ripple across various markets, the report emphasizes that vulnerable nations like Sri Lanka could bear the brunt, potentially impeding access to vital infrastructure, trade opportunities, and green investments.

Following economic downturn, labor shortage emerges as the second most significant risk for Sri Lanka, alongside concerns about unemployment. The report underscores that job creation in the coming decade will heavily depend on investments directed toward climate and technology-related transitions. Moreover, energy supply shortage, inflation, and public debt feature prominently among the top five risks for Sri Lanka, according to findings from the WEF’s Executive Opinion Survey (EOS).

The report also highlights broader global trends, emphasizing the importance of collaborative efforts to address systemic risks. It calls for proactive measures to navigate the evolving risk landscape and mitigate potential disruptions to economic stability and social well-being.

Given the interconnected nature of global risks, the WEF stresses the need for cross-sectoral partnerships and forward-thinking strategies to build resilience and foster sustainable development in Sri Lanka and beyond.

Courtesy of Daily Mirror

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