The United Nations issued a report saying that


　　the recovery of world economic employment is weak


. 　　 Our reporter Gao Weidong

　　On January 13, local time, the United Nations released the 2022 "World Economic Situation and Prospects" report, pointing out that due to the new round of new crown pneumonia caused by the mutant strain of Omicron, the labor market has continued to face challenges, and supply chain problems have not been resolved. Coupled with rising inflationary pressures, the global economic recovery is facing huge headwinds.

After growing at 5.5% in 2021, the global economy is expected to grow by just 4.0% in 2022 and 3.5% in 2023.

　　The report emphasizes that, driven by strong consumer spending growth and the return of capital, the economy will recover strongly in 2021, with trade in goods exceeding pre-pandemic levels and achieving the highest growth rate in more than 40 years.

However, as the stimulus effects of monetary and fiscal support policies begin to wane, and supply chains are severely disrupted, growth will slow sharply by the end of 2021.

Rising inflationary pressures in many economies pose additional risks to the recovery.

　　UN Secretary-General António Guterres said: "In this period of fragile and uneven global recovery, the World Economic Situation and Prospects 2022 report calls for a more targeted and coordinated response at the national and international levels. Now is the time to close the inequality gap within and between countries. As one family, if we stand together, we can make 2022 a year of real human and economic recovery.”

　　The mutant strain of Omicron is extremely contagious, and the human and economic losses caused by the new wave of epidemics are expected to continue to expand.

Without a coordinated and sustained global approach, the pandemic will remain the greatest risk to an inclusive and sustainable recovery of the world economy.

　　In the next two years and beyond, employment conditions are expected to remain well below pre-pandemic levels, the report noted.

Labor force participation rates in the U.S. and Europe are still hovering at historically low levels, as many people who lost their jobs or left the labor force during the pandemic have yet to return to work.

Labor shortages in advanced economies have led to increased supply chain challenges and inflationary pressures.

Meanwhile, job growth in developing countries remains subdued due to slow progress in vaccination and limited stimulus spending.

A slow employment recovery is expected in Africa, Latin America and the Caribbean, and West Asia.

In many countries, job creation is not fast enough to make up for previous job losses.

Against the backdrop of a sluggish employment recovery, the number of people living in extreme poverty is expected to remain well above pre-pandemic levels, and poverty levels in the most vulnerable economies are expected to increase further.

In Africa, the number of people living in absolute poverty is expected to continue to rise through 2023.

　　The report argues that growing inequality within and between countries is becoming a long-term scar from the pandemic.

A full recovery of per capita GDP in many developing countries will be difficult in the coming years.

Compared with pre-pandemic forecasts, projected GDP per capita in Africa and Latin America and the Caribbean will fall by 5.5 and 4.2 percentage points, respectively.

A prolonged downturn will exacerbate poverty and inequality, hinder sustainable development and combat climate change.

By contrast, GDP per capita in advanced economies is projected to almost fully recover to pre-pandemic levels in 2023.

　　In addition, the uneven recovery of employment and income among different groups has exacerbated income inequality within countries.

The pandemic has caused a sharp drop in women's employment, especially in developing countries.

Funding for women doing unpaid household tasks, such as childcare, remains critical to helping women reintegrate into the workforce.

　　The report argues that in many developing countries, fiscal space and financing constraints have made it difficult for governments to finance pandemic-related spending, including expanding vaccinations, social protection and supporting employment.

An accommodative fiscal stance, which avoids premature shrinking of the balance sheet, should remain a priority to ensure a strong, inclusive and sustainable recovery.

　　Amid rising inflationary pressures, central banks around the world have begun rolling back the extraordinary monetary measures they had taken to deal with the coronavirus crisis.

While necessary, a quick withdrawal of monetary stimulus could derail the recovery.

Worth mentioning is the Asset Purchase Program.

In the early days of the crisis, asset purchase programs effectively addressed financial distress and supported economic recovery.

However, the plan also increases global financial fragility and widens wealth inequality.

　　The fiscal and debt situation in many low-income countries is particularly difficult.

Unsustainable external debt burdens, additional borrowing during the pandemic, and rising debt servicing costs have brought many countries to the brink of a debt crisis.

The cancellation of asset purchase programs and sharply higher interest rates in developed countries could trigger massive capital outflows and further worsen the debt situation of many developing countries.

　　Hamid Rashid, the report's lead author and head of the UN Department of Economic and Social Affairs' Center for Global Economic Monitoring, emphasized: "Monetary policy makers in developed countries need to adjust the pace and sequence of asset purchase reductions, and in the process of reducing balance sheets, At the same time, we must pay attention to maintaining financial stability, keeping the cost of repayment of public debt low, ensuring debt sustainability, and avoiding premature and rapid balance sheet shrinkage that may cause financial market turmoil."