According to United Nation’s World Economic Situation and Prospects 2021, a once-in-a-century crisis—a Great Disruption unleashed by the COVID-19 pandemic—hit the world economy in 2020. The pandemic reached every corner of the world, infecting more than 90 million and, so far, has killed close to 2 million people worldwide. Governments around the world responded rapidly—and boldly—to stem the health and economic contagion of the crisis. Fiscal and monetary stimulus packages were quickly rolled out to save the economy. The crisis responses, however, entailed difficult choices between saving lives and saving livelihoods, between speed of delivery and efficiency, and between short-term costs and long-term impacts.
While timely and massive fiscal interventions helped to prevent the worst, they did not mitigate the broader discontent that stems from the marginalization of the most vulnerable population groups and the stark inequality that divides the haves and the have nots. The path to recovery and progress on SDGs will critically hinge on the ability and political commitment of countries to make sure that the crisis response builds resilience against future economic, social and climatic shocks.
World gross product fell by an estimated 4.3 per cent in 2020—the sharpest contraction of output since the Great Depression. During the Great Recession in 2009, world output contracted by 1.7 per cent. The pandemic clearly hit the developed economies the hardest, with many countries in Europe and several States of the United States of America adopting strict lockdown measures early on during the outbreak. Output in developed economies is estimated to have shrunk by 5.6 per cent in 2020, with growth projected to recover to 4.0 per cent in 2021. The developing countries experienced a relatively less severe contraction, with output shrinking by 2.5 per cent in 2020, owing partly to the delayed outbreak of the pandemic and the generally less restrictive measures taken by Governments to contain its spread. Their economies are projected to grow by 5.7 per cent in 2021. The least developed countries (LDCs) saw their gross domestic product (GDP) shrink by 1.3 per cent in 2020, with growth projected to reach 4.9 per cent in 2021.
Growth of world output and gross domestic product (in %)
Source: PHD research Bureau, PHDCCI, compiled from UN DESA.
d Growth rates provided are on a calendar-year basis. For fiscal-year growth figures, please refer to the Statistical annex in the link appended
e? Includes goods and services.
f??Based on 2015 benchmark
Please find appended the link to download the detailed document on United Nation’s World Economic Situation and Prospects 2021, for your kind reference.
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