A woman walks with a baby stroller in front of the United Nations (UN) headquarters in New York, the United States, July 20, 2020. (Xinhua/Wang Jiangang)
The United Nations said on Monday that global economic recovery remains precarious in 2021 and the rebound of 4.7 percent would barely offset the losses of 2020.
In 2020, the world economy shrank by 4.3 percent, over two and half times more than during the global financial crisis of 2009. The modest recovery of 4.7 percent expected in 2021 would barely offset the losses of 2020, according to the latest World Economic Situation and Prospects.
The report warns that the devastating socio-economic impact of the COVID-19 pandemic will be felt for years to come unless smart investments in economic, societal and climate resilience ensure a robust and sustainable recovery of the global economy.
The report underscores that sustained recovery from the pandemic will depend not only on the size of the stimulus measures, and the quick rollout of vaccines, but also on the quality and efficacy of these measures to build resilience against future shocks.
"We are facing the worst health and economic crisis in 90 years. As we mourn the growing death toll, we must remember that the choices we make now will determine our collective future," said UN Secretary-General Antonio Guterres.
"Let's invest in an inclusive and sustainable future driven by smart policies, impactful investments, and a strong and effective multilateral system that places people at the heart of all socio-economic efforts," the top UN official added.
Developed economies, projected to see a 4 percent output growth in 2021, shrank the most in 2020, by 5.6 percent, due to economic shutdowns and subsequent waves of the pandemic, increasing the risk of premature austerity measures that would only derail recovery efforts globally. Developing countries saw a less severe contraction at 2.5 percent, with an expected rebound of 5.7 percent in 2021, according to the estimates presented in the report.
The UN Department of Economic and Social Affairs (DESA) says that 131 million more people were pushed into poverty in 2020, many of them women, children and people from marginalized communities. The pandemic has adversely affected women and girls disproportionately, exposing them to increased risk of economic devastation, poverty, violence and illiteracy.
Women make up more than 50 percent of the workforce in high-risk labor and service intensive sectors, such as retail, hospitality and tourism -- areas hardest hit by the lockdown. Many of them have limited or no access to social protection.
