The United Nations has concluded that the Coronavirus pandemic is causing the global economy to lose $ 10 trillion

The United Nations has concluded that the Coronavirus pandemic is causing the global economy to lose $ 10 trillion

According to the United Nations Conference on Trade and Development (UNCTAD), the coronavirus pandemic and the repercussions of the lockdowns imposed to combat it have resulted in an economic loss of $ 10 trillion worldwide.

UNCTAD found that despite projections that the global economy could grow by 4.7% by 2021, it would still be $ 10 trillion below the expected figure if the pandemic never occurred.

“Last year, the global economy recorded the largest annual decline in production since the introduction of statistics on global economic activity in the early 1940s.” Read the conference report released on Thursday.

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She emphasized that while wealthier countries, such as the United States, agree on budget spending budgets and that China is growing again in late 2020, many poor countries are facing economic losses.

“Due to limited fiscal space, tight restrictions on the balance of payments and insufficient international support, developing countries are the hardest hit by the recession, resulting in some of the largest declines in personal income as a percentage of GDP,” the report said.

The organization raised its previous global growth forecast for this year by 4.3% to 4.7%, citing the possibility of a “stronger recovery in the United States”.

In January, the World Bank said the global economy could grow by 4% by 2021, while the International Monetary Fund (IMF) said it could grow by as much as 5.5%.

Lauren Walker
Brussels Times

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