The global economy is estimated to expand in 2017, but non-financial risks paint a less-than-rosy picture, bankers and economists said at a Shanghai forum.
Political risks, terrorism and cyber security were at elevated levels in many major market economies, Leslie Maasdorp, vice president and CFO of the New Development Bank (NDB), said at the two-day Lujiazui Forum, which closed Wednesday.
"We face issues that can not be solved by one regulation or one country [...] We need to seriously think about how to continue [...] global cooperation to control these risks," said Maasdorp.
According to the economic outlook in April by the International Monetary Fund, global economic activity is picking up with a cyclical recovery in investment, manufacturing and trade. World growth is expected to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 percent in 2018.
Yet, there are still concerns, according to Daniel Mminele, deputy governor of the South African Reserve Bank.
"Brexit negotiations [...] may turn out to be more difficult due to high leverage in some areas and the result of the recent UK election," he said.
Protectionism remains a risk. According to Mminele, anti-globalization, greater protectionism in multilateral trade and increased geopolitical tensions may have a huge impact on the economy in the near future.
The Lujiazui Forum has been held in Shanghai since 2008. This year, the theme was "financial reform and steady development from a global perspective."