UN: Global economy shrinks by 3.2 percent in 2020

The United Nations (UN) predicts that the global economy will shrink by 3.2 percent this year due to Covid-19.

A report released today on the global economic situation and prospects for the second half of 2020 states that the global economy will shrink sharply by 3.2 percent this year, driven by the Covid-19 eruption.

Noting that the contraction in the economy will be the largest since the Great Depression in the 1930s, the report says the global economy is expected to lose about $ 8.5 trillion by 2020 and 2021, due to the epidemic and last four-year gains. to disappear.

The report predicts that developed economies will shrink by 5 percent this year and 3.4 percent by 2021.

It is also said that there is a sharp decline in global demand and the supply chain has deteriorated, and that international trade would contract by about 15 percent this year.

Covid-19 also increased poverty and income inequality, and the epidemic is likely to cause 34.3 million people to fall below the “extreme poverty” limit this year, and 56 percent of rising poverty will occur in African countries. report.

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