Foreign Desk Report
NEW YORK: While the global growth outlook has improved, led by robust rebound in China and the United States, surging coronavirus infections and inadequate vaccination progress in many countries threaten a broad-based recovery of the world economy, according to the latest United Nations (UN) forecast.
According to the World Economic Situation and Prospects (WESP) mid-2021 report, following a sharp contraction of 3.6 per cent in 2020, the global economy is now projected to expand by 5.4 per cent in 2021, reflecting an upward revision from the UN forecasts released in January.
Amid rapid vaccinations and continued fiscal and monetary support measures, China and the United States – the two largest economies– are on the path to recovery.
In contrast, the growth outlook in several countries in South Asia, sub-Saharan Africa, and Latin America and the Caribbean, remains fragile and uncertain. For many countries, economic output is only projected to return to pre-pandemic levels in 2022 or 2023. AS regards South Asia, the report said that the crisis in the region, one of the hardest hit in the world, will last well into 2021.
“While a few smaller countries in the region have managed to roll out vaccinations, the largest economies continue to struggle to contain the increasing waves of infections,” citing India, which has been been particularly affected by a brutal second wave.
