The global economy is projected to recover back this year with growth of 5.3 percent, the fastest in nearly five decades, according to Trade and Development Report 2021 (UNCTAD).
The report says that recovery will be uneven across geographical, income, and sectoral lines. The lack of monetary autonomy and access to vaccines may also hinder the rebound in the developing economies back.
“These widening gaps, both domestic and international, are a reminder that underlying conditions if left in place, will make resilience and growth luxuries enjoyed by fewer and fewer privileged people,” said Rebeca Grynspan, the secretary-general of UNCTAD.
By 2022, UNCTAD sees global growth to slow to 3.6 percent, Following last year’s 3.5% contraction, while the world income levels below some 3.7 percent below the pre-pandemic trend line, with cumulative income loss to be at $13 trillion in 2020-2022.
The report also highlighted the following projections:
- U.S. economic production is set to grow by 5.7% in 2021 and 3% in 2022
- China’s GDP is primed to leapfrog 8.3% this year and 5.7% in 2022
- The European Union’s recovery is forecasted rise to 4% growth in 2021 and 3.3% in 2022
- India's GDP to soar 7.2% this year followed by a 6.7% expansion in 2022
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