The World Economy Will Lose $8.5 Trillion This Year The UN Declared
The global economy will experience a 3.2% drop this year, or $8.5 trillion in monetary terms, due to the new type of coronavirus pandemic. The announcement appeared on Thursday by the South African television company ENCA, with reference to the latest report "World Economic Situation and Prospects," prepared by the UN Department of Economic and Social Affairs.
"Losses of this size will negate the growth of world GDP over the previous 4 years," the document notes. At the same time, the drop in GDP of industrially developed countries will be greater, up to 5%, and the total GDP of developing countries will decrease by 0.7% in 2020."
90% of the world's economy is under restrictive measures due to the new coronavirus pandemic. This has led to disruptions in the work of production chains, a decrease in consumer demand, and an increase in unemployment.
According to UN experts, the pandemic will lead to mass impoverishment, when 34.3 million people will be below the extreme poverty line, where 56% of this number will be in Africa.
"A positive factor is the stimulus measures currently being taken by the governments of numerous countries around the world, which reach 10% of global GDP," said Elliot Harris, chief economist of the United Nations and Assistant Secretary-General for economic development. The pace of global economic recovery after the end of the pandemic depends directly on the ability of States to maintain jobs in the economy and provide income for the most affected populations."