A new World Economic Situation and Prospects report by UN predicts that the global economy will shrink by 3.2% in 2020 due to the COVID-19 pandemic.
“Nearly 90% of global economic activity has been affected by the coronavirus pandemic in one form or another. Transnational trade relations and supply chains have been disrupted, consumer demand has dropped, millions of people became jobless. These are the realities of today. But the near future does not bode for rainbow changes,” the UN noted.
The report said that the global trade will decline by almost 15% this year due to a sharp decline in global demand and interruptions in international supply chains..
“A pandemic will reduce the global economy by USD 8.5 trillion in the next 2 years, nullifying almost all achievements of the previous four years. This is the largest recession in the global economy since the Great Depression of the 1930s,” the report emphasizes.
According to the forecast, about 35 million will fall into extreme poverty in 2020, as a result of coronavirus. Experts believe that more than half of this indicator will made African countries.
“Developed countries are expecting for negative economic growth experiencing 5% decrease of GDP. These losses will be partially compensated only in 2021, when the economy will achieve moderate growth at 3.4% rate,” the report emphasizes.
The UN believes that it is necessary to focus on creating a more resilient global economic model, strengthening health and social protection systems, introducing green technologies and combating climate change when recovering from the crisis.
Read also: World sustained USD 3.4 trillion losses due to coronavirus pandemic.
Подписывайтесь на telegram-канал journalist.today
