China News Service, January 26. According to the United Nations website, the "World Economic Situation and Prospects" report released by the United Nations on the 25th stated that in 2020, the global economy will shrink by 4.3%, which is more than 2.5 times that during the financial crisis 10 years ago.
According to the report, the global economy is expected to recover moderately in 2021, with an increase of 4.7%, barely offsetting the losses of the previous year.
Data map: On June 8, 2020, local time, New York City, the United States entered the first phase of restart, and the shops on Jewelry Street began to operate.
Photo by China News Agency reporter Liao Pan
The report pointed out that in 2020, the economies of developed countries will shrink the most, with a decline of 5.6%, due to economic stagnation and the new crown epidemic.
The report said this increased the risk of premature austerity measures that would undermine global recovery efforts.
The economies of these countries are expected to grow by 4% in 2021.
At the same time, the economies of developing countries have shrunk by 2.5% in 2020 and are expected to rebound by 5.6% in 2021.
Although the large-scale stimulus measures of approximately US$12.7 trillion prevented a total collapse of the world economy and avoided another "Great Depression" similar to the one that occurred in the 1930s, the huge difference in the scale of these packages means development. Countries and developing countries will embark on different paths to recovery.
In addition, funding the stimulus package has increased global public debt by 15%, which will become a potential burden for future generations unless investments are made to promote growth.
The report emphasized that continued recovery depends not only on the scale of stimulus measures and the rapid launch of vaccines, but also on the quality and effectiveness of these measures to build the ability to withstand future shocks.
Elliott Harris, Chief Economist and Assistant Secretary-General for Economic Development of the United Nations, said: "The severity of this unprecedented crisis indicates that the (economic) recovery will be slow and painful."
He said: "With the launch of the new crown vaccine, we have entered a long recovery phase. We need to start promoting long-term investment to pave the way for a more resilient recovery-while adopting a fiscal stance that avoids premature tightening and renewed Define a debt sustainability framework, a universal social protection plan, and accelerate the transition to a green economy."