Dubai, United Arab Emirates (CNN) – The United Nations warned on Monday that the devastating social and economic impact of the Coronavirus pandemic will remain palpable for several years to come unless smart investments in economic, societal and climate resilience ensure a strong and sustainable recovery of the global economy.
The United Nations said in its report on the state of the world’s economic situation for 2021, that it expects an economic recovery of 4.7% in the year 2021 that will “barely” compensate for the losses of the year 2020, during which the global economy shrank by 4.3%.
The report indicates that the sustainable recovery from the epidemic will not only depend on the size of stimulus measures and the rapid distribution of Coronavirus vaccines, but also on the quality and effectiveness of these measures to build resilience against future shocks.
“We are facing the worst health and economic crisis in 90 years, and as we express our grief over the increasing number of deaths, we must remember that the choices we make now will determine our collective future. Let us invest in an inclusive and sustainable future that depends on wise policies and impactful investments,” said United Nations Secretary-General Antonio Guterres. A strong and effective multilateral system places people at the center of all social and economic efforts. “
Developed economies are expected to witness 4% growth in output in 2021, after experiencing the largest decline in 2020, by 5.6% due to the economic shutdown and the subsequent waves of the epidemic.
As for developing countries, they witnessed a less severe contraction of 2.5% in 2020, and is expected to witness a recovery of 5.6% in 2021, according to the estimates presented in the report.
The UN Department of Economic and Social Affairs says an additional 131 million people were pushed into poverty in 2020, many of them women, children and people from marginalized communities. The epidemic has severely affected women and girls in particular, exposing them to increased risks of economic devastation, poverty, violence and illiteracy.