Markets
What’s At Risk: An 18-Month View of a Post-COVID World
What’s At Risk: An 18-Month View of a Post-COVID World
As the world continues to grapple with the effects of COVID-19, no part of society seems to be left unscathed. Fears are surmounting around the economy’s health, and dramatic changes in life as we know it are also underway.
In today’s graphic, we use data from a World Economic Forum survey of 347 risk analysts on how they rank the likelihood of major risks we face in the aftermath of the pandemic.
What are the most likely risks for the world over the next year and a half?
The Most Likely Risks
In the report, a “risk” is defined as an uncertain event or condition with the potential for significant negative impacts on various countries and industries. The 31 risks have been grouped into five major categories:
- Economic: 10 risks
- Societal: 9 risks
- Geopolitical: 6 risks
- Technological: 4 risks
- Environmental: 2 risks
Among these, risk analysts rank economic factors high on their list, but the far-reaching impacts of the remaining factors are not to be overlooked either. Let’s dive deeper into each category.
Economic Shifts
The survey reveals that economic fallout poses the most likely threat in the near future, dominating four of the top five risks overall. With job losses felt the world over, a prolonged recession has 68.6% of experts feeling worried.
Rank | Economic Risk | % |
---|---|---|
#1 | Prolonged recession of the global economy | 68.6% |
#2 | Surge in bankruptcies (big firms and SMEs) and a wave of industry consolidation | 56.8% |
#3 | Failure of industries or sectors in certain countries to properly recover | 55.9% |
#4 | High levels of structural unemployment (especially youth) | 49.3% |
#6 | Weakening of fiscal positions in major economies | 45.8% |
#7 | Protracted disruption of global supply chains | 42.1% |
#8 | Economic collapse of an emerging market or developing economy | 38.0% |
#16 | Sharp increase in inflation globally | 20.2% |
#20 | Massive capital outflows and slowdown in foreign direct investment | 17.9% |
#21 | Sharp underfunding of retirement due to pension fund devaluation | 17.6% |
The pandemic has accelerated structural change in the global economic system, but this does not come without consequences. As central banks offer trillions of dollars worth in response packages and policies, this may inadvertently burden countries with even more debt.
Another concern is that COVID-19 is now hitting developing economies hard, critically stalling the progress they’ve been making on the world stage. For this reason, 38% of the survey respondents anticipate this may cause these markets to collapse.
Social Anxieties
High on everyone’s mind is also the possibility of another COVID-19 outbreak, despite global efforts to flatten the curve of infections.
Rank | Societal Risk | % |
---|---|---|
#10 | Another global outbreak of COVID-19 or different infectious disease | 30.8% |
#13 | Governmental retention of emergency powers and/or erosion of civil liberties | 23.3% |
#14 | Exacerbation of mental health issues | 21.9% |
#15 | Fresh surge in inequality and social divisions | 21.3% |
#18 | Anger with political leaders and distrust of government | 18.4% |
#23 | Weakened capacity or collapse of national social security systems | 16.4% |
#24 | Healthcare becomes prohibitively expensive or ineffective | 14.7% |
#26 | Failure of education and training systems to adapt to a protracted crisis | 12.1% |
#30 | Spike in anti-business sentiment | 3.2% |
With many countries moving to reopen, a few more intertwined risks come into play. 21.3% of analysts believe social inequality will be worsened, while 16.4% predict that national social safety nets could be under pressure.
Geopolitical Troubles
Further restrictions on trade and travel movements are an alarm bell for 48.7% of risk analysts—these relationships were already fraught to begin with.
Rank | Geopolitical Risk | % |
---|---|---|
#5 | Tighter restrictions on the cross-border movement of people and goods | 48.7% |
#12 | Exploitation of COVID-19 crisis for geopolitical advantage | 24.2% |
#17 | Humanitarian crises exacerbated by reduction in foreign aid | 19.6% |
#22 | Nationalization of strategic industries in certain countries | 17.0% |
#27 | Failure to support and invest in multilateral organizations for global crisis response | 7.8% |
#31 | Exacerbation of long-standing military conflicts | 2.3% |
In fact, global trade could drop sharply by 13-32% while foreign direct investment (FDI) is projected to decline by an additional 30-40% in 2020.
The drop in foreign aid could also put even more stress on existing humanitarian issues, such as food insecurity in conflict-ridden parts of the world.
Technology Overload
Technology has enabled a significant number of people to cope with the impact and spread of COVID-19. An increased dependence on digital tools has enabled wide-scale remote working for business—but for many more without this option, this accelerated adoption has hindered rather than helped.
Rank | Technological Risk | % |
---|---|---|
#9 | Cyberattacks and data fraud due to sustained shift in working patterns | 37.8% |
#11 | Additional unemployment from accelerated workforce automation | 24.8% |
#25 | Abrupt adoption and regulation of technologies (e.g. e-voting, telemedicine, surveillance) | 13.8% |
#28 | Breakdown of IT infrastructure and networks | 6.9% |
Over a third of the surveyed risk analysts see the emergence of cyberattacks due to remote working as a rising concern. Another near 25% see the threat of rapid automation as a drawback, especially for those in occupations that do not allow for remote work.
Environmental Setbacks
Last but certainly not least, COVID-19 is also potentially halting progress on climate action. While there were initial drops in pollution and emissions due to lockdown, some estimate there could be a severe bounce-back effect on the environment as economies reboot.
Rank | Environmental Risk | % |
---|---|---|
#19 | Higher risk of failing to invest enough in climate resilience and adaptation | 18.2% |
#29 | Sharp erosion of global decarbonization efforts | 4.6% |
As a result of the more immediate concerns, sustainability may take a back seat. But with environmental issues considered the biggest global risk this year, these delayed investments and missed climate targets could put the Earth further behind on action.
Which Risks Are of the Greatest Concern?
The risk analysts were also asked which of these risks they considered to be of the greatest concern for the world. The responses to this metric varied, with societal and geopolitical factors taking on more importance.
In particular, concerns around another disease outbreak weighed highly at 40.1%, and tighter cross-border movement came in at 34%.
On the bright side, many experts are also looking to this recovery trajectory as an opportunity for a “great reset” of our global systems.
This is a virus that doesn’t respect borders: it crosses borders. And as long as it is in full strength in any part of the world, it’s affecting everybody else. So it requires global cooperation to deal with it.
——Gita Gopinath, IMF Chief Economist
Markets
Ranked: The World’s 50 Top Countries by GDP, by Sector Breakdown
This graphic shows GDP by country, broken down into three main sectors: services, industry, and agriculture.

Visualized: The Three Pillars of GDP, by Country
Over the last several decades, the service sector has fueled the economic activity of the world’s largest countries. Driving this trend has been changes in consumption, the easing of trade barriers, and rapid advancements in tech.
We can see this in the gross domestic product (GDP) breakdown of each country, which gets divided into three broad sectors: services, industry, and agriculture.
The above graphic from Pranav Gavali shows GDP by country, and how each sector contributes to an economy’s output, with data from the World Bank.
Drivers of GDP, by Country
As the most important and fastest growing component of GDP, services make up almost 60% of GDP in the world’s 50 largest countries. Following this is the industrial sector which includes the production of raw goods.
Below, we show how each sector contributes to GDP by country as of 2021:
Country | Services (% GDP) | Industry (% GDP) | Agriculture (% GDP) | Other (% GDP) | GDP (T) |
---|---|---|---|---|---|
🇺🇸 U.S. | 77.6 | 17.9 | 1.0 | 3.6 | $22.9 |
🇨🇳 China | 53.5 | 39.3 | 7.2 | 0.0 | $16.9 |
🇯🇵 Japan | 69.9 | 28.8 | 1.0 | 0.4 | $5.1 |
🇩🇪 Germany | 62.9 | 26.7 | 0.9 | 9.5 | $4.2 |
🇬🇧 UK | 71.6 | 17.3 | 0.7 | 10.4 | $3.1 |
🇫🇷 France | 70.3 | 16.7 | 1.6 | 11.4 | $2.9 |
🇮🇳 India | 47.9 | 26.1 | 17.3 | 8.7 | $2.9 |
🇮🇹 Italy | 65.0 | 22.7 | 1.9 | 10.4 | $2.1 |
🇨🇦 Canada* | 67.7 | 24.1 | 1.7 | 6.6 | $2.0 |
🇰🇷 South Korea | 57.0 | 32.4 | 1.8 | 8.8 | $1.8 |
🇧🇷 Brazil | 57.8 | 20.2 | 7.5 | 14.6 | $1.6 |
🇦🇺 Australia | 65.7 | 25.5 | 2.3 | 6.5 | $1.6 |
🇷🇺 Russia | 54.1 | 31.8 | 3.9 | 10.3 | $1.6 |
🇪🇸 Spain | 67.4 | 20.4 | 2.6 | 9.6 | $1.4 |
🇲🇽 Mexico | 59.2 | 30.8 | 3.9 | 6.1 | $1.3 |
🇮🇩 Indonesia | 42.8 | 39.8 | 13.3 | 4.1 | $1.2 |
🇮🇷 Iran | 47.3 | 38.0 | 12.4 | 2.3 | $1.1 |
🇳🇱 Netherlands | 69.4 | 17.9 | 1.5 | 11.2 | $1.0 |
🇨🇭 Switzerland | 71.9 | 24.6 | 0.6 | 2.8 | $0.8 |
🇹🇷 Turkiye | 52.8 | 31.1 | 5.5 | 10.6 | $0.8 |
🇹🇼 Taiwan | 60.6 | 38.0 | 1.5 | 0.0 | $0.8 |
🇸🇦 Saudi Arabia | 46.5 | 44.7 | 2.7 | 6.1 | $0.8 |
🇵🇱 Poland | 56.9 | 27.9 | 2.2 | 13.0 | $0.7 |
🇧🇪 Belgium | 68.8 | 19.6 | 0.7 | 10.9 | $0.6 |
🇸🇪 Sweden | 65.0 | 22.5 | 1.3 | 11.3 | $0.6 |
🇮🇱 Israel | 72.4 | 17.2 | 1.3 | 9.1 | $0.5 |
🇦🇷 Argentina | 52.5 | 23.6 | 7.1 | 16.8 | $0.5 |
🇦🇹 Austria | 62.4 | 25.8 | 1.2 | 10.5 | $0.5 |
🇳🇬 Nigeria | 43.8 | 31.4 | 23.4 | 1.4 | $0.5 |
🇹🇭 Thailand | 56.3 | 35.0 | 8.7 | 0.0 | $0.5 |
🇮🇪 Ireland | 55.4 | 37.8 | 1.0 | 5.8 | $0.5 |
🇭🇰 Hong Kong | 89.7 | 6.0 | 0.1 | 4.3 | $0.4 |
🇩🇰 Denmark | 66.7 | 19.3 | 0.9 | 13.1 | $0.4 |
🇸🇬 Singapore | 70.3 | 24.4 | 0.0 | 5.3 | $0.4 |
🇿🇦 South Africa | 63.0 | 24.5 | 2.5 | 10.0 | $0.4 |
🇵🇭 Philippines | 61.0 | 28.9 | 10.1 | 0.0 | $0.4 |
🇪🇬 Egypt | 52.5 | 31.2 | 11.4 | 4.9 | $0.4 |
🇧🇩 Bangladesh | 51.3 | 33.3 | 11.6 | 3.7 | $0.4 |
🇳🇴 Norway | 51.8 | 36.3 | 1.7 | 10.2 | $0.4 |
🇻🇳 Vietnam | 41.2 | 37.5 | 12.6 | 8.8 | $0.4 |
🇲🇾 Malaysia | 51.6 | 37.8 | 9.6 | 1.1 | $0.4 |
🇦🇪 U.A.E. | 51.6 | 47.5 | 0.9 | 0.0 | $0.4 |
🇵🇰 Pakistan | 52.1 | 18.8 | 22.7 | 6.4 | $0.3 |
🇵🇹 Portugal | 64.7 | 19.6 | 2.2 | 13.5 | $0.3 |
🇫🇮 Finland | 60.3 | 24.1 | 2.3 | 13.4 | $0.3 |
🇨🇴 Colombia | 58.0 | 24.9 | 7.6 | 9.5 | $0.3 |
🇷🇴 Romania | 59.1 | 26.7 | 4.5 | 9.6 | $0.3 |
🇨🇿 Czechia | 58.8 | 30.3 | 1.8 | 9.1 | $0.3 |
🇨🇱 Chile | 54.4 | 31.3 | 3.6 | 10.6 | $0.3 |
🇳🇿 New Zealand* | 65.6 | 20.4 | 5.7 | 8.4 | $0.2 |
Industrial sector includes construction. Agriculture sector includes forestry and fishing. *Data as of 2019.
In the U.S., services make up nearly 78% of GDP. Apart from Hong Kong, it comprises the highest share of GDP across the world’s largest economies. Roughly 80% of American jobs in the private sector are in services, spanning from healthcare and entertainment to finance and logistics.
Like America, a growing share of China’s GDP is from services, contributing to almost 54% of total economic output, up from 44% in 2010. This can be attributed to rising incomes and higher productivity in the sector as the economy has grown and matured, among other factors.
In a departure from the top 10 biggest countries globally, agriculture continues to drive a large portion of India’s GDP. India is the world’s second largest producer of wheat and rice, with agriculture accounting for 44% of the country’s employment.
While the services sector has grown in India, it makes up a greater share in other emerging economies such as Brazil (58%), Mexico (59%), and the Philippines (61%).
Growth Dynamics
Services-led growth has risen faster than manufacturing across many developing nations, underpinned by productivity growth.
This structural shift is seen across economies. In many countries in Africa, for instance, jobs have increasingly moved from agriculture to services and trade, where it now accounts for 42% of jobs.
These growth patterns are supported by rising incomes in developing economies, while innovation in tech is lowering barriers to enabling service growth. As the industrial sector makes up a lower share of trade and economic activity, the service sector is projected to make up 77% of global GDP by 2035.
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