The world economy is expected to barely make up for 2020 losses in 2021 – UN report

NEW YORK (Reuters) – The world economy is expected to experience a modest 4.7% recovery this year, after shrinking 4.3% in 2020 due to the COVID-19 pandemic – more than double the impact of the global financial crisis in 2009 – the United States Nations said Monday.

The United Nations Department of Economic and Social Affairs World Economic Situation and Outlook report says developed economies shrank by 5.6% in 2020 are expected to recover 4%, while developing countries contracted by 2.5% and it is estimated that they will grow by 5.7% in 2021.

“Massive and timely fiscal responses prevented an economic catastrophe similar to the Great Depression around the world,” the report said.

“It will remain critical that the G20 economies get back on the growth trajectory, not only to lift the rest of the world economies, but also to make the world economy more resilient to future shocks,” the report warns.

He said 131 million more people were pushed into poverty in 2020.

Reporting by Michelle Nichols; Edited by Angus MacSwan