The United Nations Conference on Trade and Development (UNCTAD) now expects the global economy to grow faster in the current year of 2021 at 4.7 per cent compared to its previous forecast of a 4.3 per cent annual growth. Announcing this upgrade, the UN body has said that its upgrade was prompted by better than expected recovery of the economy of the United States.
The report said that a growth in the US economy which the UNCTAD as well as economists were not expecting prompted the UN body to make the upwards revision from its previous forecast in September last year. The US economy has gained from higher consumer spending as well as the of progress made in the distribution of Covid-19 vaccines and a vast stimulus package.
"The global recovery that began in the third quarter of 2020 is expected to continue through 2021, albeit with a good deal of unevenness and unpredictability, reflecting epidemiological, policy and coordination uncertainties," the report said.
The OECD has also revised its forecast earlier this month for the global economic growth from its previous estimate of 4.2 per cent to 5.6 per cent for the current year.
But the economic impact and implications of the Covid-19 pandemic will be long lasting and would need continued government support, said the 22-page UNCTAD report called 'Out of the frying pan ... into the fire?'. The report also said that a "misguided return to austerity" is the greatest risk to the global economic recovery.
The lockdowns that were imposed throughout the world to contain the spread of the pandemic last year had resulted in a 3.9 per cent fall in output, estimated the report.
The report described the pandemic as being "exorbitant" and added that the "destruction of income on an unprecedented scale" was caused with people in developing countries particularly hard hit.
However the global economic situation and conditions of people in developing and developed countries could have been worse but for the preemptive actions taken by central banks to avoid financial meltdown throughout the world, the report further noted. The recovery of the global economy so far has also been helped by the pandemic relief packages announced by various governments as well as a bounce back in commodity prices and the fast tracking Covid-19 vaccine development and its roll out across the world, the report also noted.
(Source:www.channelnewsasia.com)
The report said that a growth in the US economy which the UNCTAD as well as economists were not expecting prompted the UN body to make the upwards revision from its previous forecast in September last year. The US economy has gained from higher consumer spending as well as the of progress made in the distribution of Covid-19 vaccines and a vast stimulus package.
"The global recovery that began in the third quarter of 2020 is expected to continue through 2021, albeit with a good deal of unevenness and unpredictability, reflecting epidemiological, policy and coordination uncertainties," the report said.
The OECD has also revised its forecast earlier this month for the global economic growth from its previous estimate of 4.2 per cent to 5.6 per cent for the current year.
But the economic impact and implications of the Covid-19 pandemic will be long lasting and would need continued government support, said the 22-page UNCTAD report called 'Out of the frying pan ... into the fire?'. The report also said that a "misguided return to austerity" is the greatest risk to the global economic recovery.
The lockdowns that were imposed throughout the world to contain the spread of the pandemic last year had resulted in a 3.9 per cent fall in output, estimated the report.
The report described the pandemic as being "exorbitant" and added that the "destruction of income on an unprecedented scale" was caused with people in developing countries particularly hard hit.
However the global economic situation and conditions of people in developing and developed countries could have been worse but for the preemptive actions taken by central banks to avoid financial meltdown throughout the world, the report further noted. The recovery of the global economy so far has also been helped by the pandemic relief packages announced by various governments as well as a bounce back in commodity prices and the fast tracking Covid-19 vaccine development and its roll out across the world, the report also noted.
(Source:www.channelnewsasia.com)
