Coronavirus pandemic results in $10 trillion loss for global economy, UN finds

Coronavirus pandemic results in $10 trillion loss for global economy, UN finds
Credit: Belga

The coronavirus pandemic and the effects of the lockdowns imposed to fight it have resulted in a $10 trillion (around €8.3 billion) economic loss worldwide, according to the United Nations Conference on Trade and Development (UNCTAD).

Despite predictions showing that the global economy could grow by 4.7% in 2021, it will still be $10 trillion short of the expected figure if the pandemic had never happened, UNCTAD found.

“Last year, the world economy recorded its largest annual decline in output since the introduction of statistics on global economic activity in the early 1940s,” a report from the conference released on Thursday read.

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It emphasised that while richer countries, such as the US, are approving fiscal spending budgets and China returned to growth in late 2020, many poorer countries are struggling with the economic loss.

“Because of limited fiscal space, tightening balance of payments constraints and inadequate international support, developing countries are most affected by the recession, and have resulted in some of the largest declines in personal income relative to GDP,” the report stated.

The organisation raised its earlier prediction for this year’s global growth of 4.3% to 4.7%, citing a possible “stronger recovery in the US”.

In January, the World Bank said the global economy could grow by 4% in 2021, while the International Monetary Fund (IMF) said it could increase by up to 5.5%.

Lauren Walker
The Brussels Times

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