The United Nations Conference on Trade and Development (UNCTAD) released a report on the 15th and predicted that the global economy will grow by 5.3% in 2021, the fastest growth rate in the past 50 years, but the economic recovery is uneven among different regions, industries and income groups.
The report also predicts that the global economic growth rate will slow to 3.6% in 2022. The report warns that if policymakers make wrong decisions, the decline in growth rate may be more severe than expected.
The report pointed out that many developing economies have been hit much more severely by the new crown epidemic than during the international financial crisis, and the heavy debt burden has squeezed their fiscal policy space. Lack of currency autonomy and shortage of vaccine supply have also hindered the recovery of many developing economies, widening the gap between them and developed economies.
UNCTAD Secretary-General Reveka Greenspan said: "These widening gaps both domestically and internationally are a reminder that if basic conditions remain unchanged, economic flexibility and growth will increasingly become privileges enjoyed by the minority."
Richard Kozul-Wright, Director of the Globalization and Development Strategy Division of UNCTAD, said: "The epidemic has created an opportunity to rethink the core principles of international economic governance. This is a missed opportunity after the international financial crisis."
UNCTAD believes that the biggest risk facing the global economy is that "the economic recovery of developed countries will divert people's attention from the urgently needed reforms. Without these reforms, developing countries will continue to be in a weak and vulnerable position."
