The Global Economy is Expected to Grow by 5.3% by the End of 2021

  • International
  • 16 September 2021

The United Nations Conference on Trade and Development (UNCTAD) predicted that the global economy will grow in 2021 at the fastest pace in 50 years at 5.3 percent, but it will be unbalanced around the world.

According to the "UNCTAD" report, the global economy recorded a contraction of 3.5 percent in 2020, under the pressure of the repercussions of the Coronavirus, while it will record a growth of 3.6 percent in 2022. The report shows that the expected economic recovery comes thanks to the continuation of the effects of the stimulus packages that began in 2020, in addition to accelerating the pace of vaccination distribution.

The recovery, according to UNCTAD, will be uneven at the geographical and sectoral level around the world. In advanced economies, the rentier class has experienced an explosion in wealth, while low-income people suffer. While the developing countries still lack monetary independence and access to vaccines, which hinders the growth of many developing economies, delays in vaccination operations will cost the global economy $2.3 trillion by 2025, and emerging countries will bear the bulk of this cost.

The global economy was severely affected as of the first quarter of 2020, with the spread of the virus and the closure of most vital facilities, before gradually resuming their activities in the last quarter of 2020.

Source (Anadolu Agency, Edited)