Global economy during Covid-19
Covid-19 pandemic turned out to be among the worst disasters world has ever seen till date. The world has lost a lot in terms of human and material assets, and counting, over the past one and half years of outbreak. A pandemic can never be bias, same reflected this time. Men or women, rich or poor, educated or illiterate, employed or unemployed, no one remained absolutely unaffected all through. Still, we don’t where the things will go in coming time.
Covid-19 pandemic is expected to still be there in coming future though, hopefully, will lose its current might. People’s life and livelihood are still in danger, globally. Despite the world constantly trying to provide best medical treatments to those infected, more people are going in grip of decease. While the world strives for protecting people by social distancing or vaccination, the virus is also emerging as stronger contender with more dangerous variants.
Inequality threatens global growth
The positive signs of economic recovery sensed by the experts are still not reflected in the homes of general public. Whatever efforts are being made to strengthen the economies and save the humanity, common people are losing hope of re-establishing their financial system on track soon. And as always happens after any calamity, worst sufferers again are the most vulnerable. There are a few more points you must know amid the ongoing corona crisis.
In its mid-year report, the World Economic Situation and Prospects (WESP) has alerted world on widening inequality that is threatening global growth projection of 5.4 percent. UN Department of Social and Economic Affairs (DESA) has published 5 most important factors reflecting the global economy in corona times. We take you further to revisit 5 important points about the state of the global economy given by United Nations economists.
Global economy during Covid-19
- Largest economies bounced back: The world’s largest economies – United States and China – are recovering from the Covid-19 slowdown. But pace of recovery is very slow for developing countries, making it difficult to come over pandemic damages very soon.
- Most vulnerable, biggest suffers: Mass layoffs due to companies being shut down during lock-downs worst affected the most vulnerable. All over the world, the persisting outbreak exposed vulnerability of informal employment, i.e. the largest source of jobs.
- Strong global trade recovery in Asia: Demand has significantly surged for electrical and electronic equipment, PPEs and other manufactured goods. This has resulted in a boost in merchandise trade mainly in Asia, making it already surpass pre-covid levels.
- Women and girls more affected: The pandemic is gender bias women and girls had to suffer more. As their home care duties risen, this population had to leave schools and workplaces. This may further increase gender inequality in education, income and wealth.
- Stronger reviving process needed: Economies worldwide have to put more efforts in the reviving process, especially for women. They need to implement better targeted and gender-sensitive policies to come over rapidly and efficiently from the pandemic impact.
Millions pushed into extreme poverty
As per DESA projection, the Covid-19 pandemic has pushed nearly 114.4 million people into extreme poverty, including 58 million women. Meanwhile, UN DESA economists have also pointed on vaccine inequity that is posing a significant risk to global economic recovery. Despite outlook for global growth improving, economic recovery is at risk, says DESA report. This is due to current impacts of the Covid-19 outbreak and inadequate vaccination movement in poorer countries.
