The World Economy Will Grow by 4.7% in 2021

The United Nations warned on Monday that the global economy is in a dangerous situation. The consequences of the coronavirus crisis will linger for years. Still, the economy is projected to improve by an average of 4.7% in 2021, which can hardly compensate for the losses of 2020.

According to a new United Nations report on the economy’s state and the global outlook, this crisis, unprecedented in the last century, reduced the global economy by 4.3% in 2020. This is the strongest contraction in world production since the Great Depression that began in 1929. It was much greater than the 1.7% contraction during the Great Depression in 2009.

The depth and severity of this unprecedented crisis show the slow and painful process of economic recovery. Elliott Harris, chief UN economist and assistant secretary-general for economic development, stated that the world enters the long-term recovery phase. Strengthening long-term investments draft the path to a more resilient recovery.

According to the report, closures, quarantine measures and social isolation during the second quarter of 2020 have helped save lives. However, it disrupted the livelihoods of hundreds of millions of people around the world.

According to the report, quarantine measures have affected about 2.7 billion workers or about 81% of the world’s workforce. Another 131 million people have become broke, many of them women, children and marginalized communities.

China, the world’s second-largest economy where Covid-19 first emerged, was one of the world’s rarest countries to record positive economic growth of 2.4% in 2020. The United Nations predicts that China’s economy will grow by 7.2% in 2021.

Taiwan’s economic growth was faster than China’s

According to Taiwan’s Bureau of statistics, its economy grew 2.98 % in 2020, compared to the previous year. This figure is higher than China’s data.

Last time, Taiwan’s economy grew faster than China was in 1990. Then, the region’s economy performed 5.5% better than China, which saw a growth of 3.9%.

Analysts say that Taiwan’s strong exports last year, especially semiconductor exports, helped offset the Coronavirus pandemic’s devastating effects.

The Congressional Budget Office, or CBO of the US, forecasts that GDP will return its pre-pandemic size by the middle of 2021. The labour force is expected to rebound to its pre-pandemic level in 2022. The CBO sees the US GDP grow 3.7% in 2021, and an unemployment rate to drop to 5.3%.