Docsun Biomed Report on Delayed Global Economic Recovery Due To Covid-19 Pandemic
By: United Nations
The slowdown is expected to carry on into next year. After an encouraging expansion of 5.5 per cent in 2021 — driven by strong consumer spending and some uptake in investment, with trade in goods surpassing pre-pandemic levels — global output is projected to grow by only 4.0 per cent in 2022 and 3.5 per cent in 2023.
Close the inequality gap
The report predicts that developing countries will take a greater long-term hit those wealthier nations. Africa and Latin America and the Caribbean are projected to see significantly lower growth, compared to pre-pandemic projections, leading to more poverty and less progress on sustainable development and climate action.
The number of people living in extreme poverty is projected to remain well-above pre-pandemic levels, with poverty projected to increase further in the most vulnerable economies: in Africa, the absolute number of people living in poverty is projected to rise through 2023. In contrast, the economies of richer countries are expected to almost fully recover by next year.
The special financial measures put in place by many governments since the pandemic – such as bailouts, improved social protection and job support – should, says the report, stay in place to ensure a strong recovery.
However, in light of rising inflation, several central banks have begun to unwind their extraordinary monetary response to the crisis.
Many low-income developing countries, are facing unsustainable external debt burdens, amid sharp interest rate rises.
Additional borrowing during the pandemic and increasing debt-servicing costs, have put many of them on the verge of a debt crisis.
Jobs, slow to re-appear
Employment levels are projected to remain well-below pre-pandemic levels during the next two years, and possibly beyond. Labour force participation in the United States and Europe remain at historically low levels, as many who lost jobs or left the labour market during the pandemic, have not yet returned.
These shortages in developed economies are adding to other pressures, such as inflation, and supply-chain challenges.
At the same time, employment growth in developing countries remains weak, amid lower vaccination progress and limited stimulus spending. Africa, Latin America and the Caribbean, and Western Asia, are projected to see a slow recovery of jobs.
Original links to the article: - https://news.un.org/
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