FX.co ★ UN unveils its outlook for global economy

Despite the fact that the pandemic is still raging across the globe, there are some countries that have already been able to slow down its spread. Besides, the start of mass vaccination has given the world a faint hope that soon the quarantine restrictions will be eased. During a period of lull, experts are calculating financial losses.

For instance, analysts at the United Nations have made an attempt to assess the negative impact of the coronavirus crisis on the world economy. The results of this study were announced by UN Secretary-General Antonio Guterres. Unfortunately, they were rather disappointing.

"The latest economic crisis has become the worst in many years. The world economy shrank by 4.3 per cent last year, which is over 2.5 times more than during the financial crisis a decade ago. The modest recovery of 4.7 per cent expected in 2021 would barely offset the losses of 2020. 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," UN Secretary-General Antonio Guterres said.

He also states that to overcome the steepest decline of the economy, it is necessary to modernize existing economic and financial schemes. "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." According to Guterres, the world has a unique opportunity to move from fragility to resilience while recovering from crisis shocks. This will require the joint work of both international organizations and national governments, society and the private sector, Guterres added. He stressed that the proposals for a New Global Compact and a New Social Contract would create equal opportunities for all while ensuring universal rights and freedoms.