According to the "World Economic Situation and Prospects for the Year 2020" released by the United Nations on the 13th, the global economy is expected to shrink by 3.2% in 2020 due to the new crown epidemic.
The report predicts that by 2020, the economies of developed countries will shrink by 5%, and the economies of developing countries will shrink by 0.7%. From 2020 to 2021, the cumulative loss of global economic output will reach 8.5 trillion US dollars, almost erasing all the growth in the past four years.
Affected by the epidemic, the global economy suffered a severe setback, the supply chain was interrupted, and demand was suppressed. The report predicts that world trade will shrink by nearly 15% in 2020.
United Nations Chief Economist Elliot Harris said in a video conference that day, the speed and intensity of the world economy ’s recovery from the crisis depends not only on the effectiveness of public health measures to slow the spread of the virus, but also on the protection of the people by countries , Especially the ability of the most vulnerable members of society to find employment and income levels. "
The report predicts that due to the epidemic, about 34.3 million people will fall into "extreme poverty" by 2020, 56% of whom live in Africa. The report said that by 2030, the population under "extreme poverty" will increase by 130 million, which is a "huge blow" to global efforts to eliminate extreme poverty and hunger.
At this stage, many countries have introduced economic stimulus measures to deal with health, social and economic crises. However, the UN report warns against taking hastily large-scale fiscal and monetary stimulus measures, such as injecting trillions of dollars of liquidity into the financial market, causing stock and bond prices to rise rapidly, but neglecting productive investment.
The report also pointed out that most developing economies have high levels of public debt, making it difficult to implement large-scale economic stimulus plans. At the same time, the decline in exports is rapidly undermining the debt sustainability of many developing countries, further restricting their implementation of stimulus measures.
