The world economy is expected to make a modest recovery of 4.7 percent this year after shrinking 4.3 percent in 2020 due to the COVID-19 pandemic – more than double the impact of the global financial crisis in 2009 – the United Nations said on Monday.
The World Economic Situation and Prospects report by the U.N. Department of Economic and Social Affairs said developed economies shrank by 5.6 percent in 2020 are projected to recover 4 percent, while developing countries contracted 2.5 percent and are estimated to grow 5.7 percent in 2021.
“Massive and timely fiscal responses prevented a Great Depression-like economic catastrophe worldwide,” the report said.
“It will remain critical that the G20 economies return to the trajectory of growth, not only to lift the rest of the world economies but also to make the world economy more resilient to future shocks,” the report warned.
It said 131 million more people were pushed into poverty in 2020.