COVID-19, Ukraine war severely impacted global economy: UN study

Global economic recovery has been hampered by repeated waves of COVID-19 infections, rising inflationary pressures, major supply-chain disruptions, policy uncertainties and persistent labour market challenges

 

 

 

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The COVID-19 pandemic precipitated the worst economic crisis in decades and reversed progress towards decent work for all. Although the global economy began to rebound in 2021, bringing some improvement in unemployment, recovery remains elusive and fragile.

According to the latest Sustainable Development Goals (SDG) report released by United Nations recently, global economic recovery has been hampered by repeated waves of COVID-19 infections, rising inflationary pressures, major supply-chain disruptions, policy uncertainties and persistent labour market challenges. The Russia-Ukraine conflict that has been ongoing since February has added fuel to the fire. The report assesses the progress of all 193 UN Member States on 169 targets ranging from sustainable economic growth, poverty, hunger and education etc.  

The factors listed above has severely impacted the global economy. According to the global body, real gross domestic product (GDP) per capita increased by 1.4 per cent in 2019, then fell sharply in 2020, by 4.4 per cent, rebounding in 2021 at an estimated growth rate of 4.4 percent. However, the global conflict in Europe is now likely to cut growth to 2.1 per cent in 2022.

The pandemic has hit the poorest countries the most. GDP of low-developed countries showed zero growth in 2020 against a 5 percent growth a year before. It is projected to rise by 4.0 per cent in 2022, and 5.7 per cent in 2023 - still well below the 7 per cent target envisioned in the 2030 Agenda for Sustainable Development.

A sharp increase in unemployment rate has also been noticed. According to estimates, global unemployment rate is projected to remain above its 2019 level of 5.4 per cent, at least until 2023. In 2021, unemployment rate improved in high-income countries but worsened in low-developed countries. The groups that were disproportionately impacted since the onset of the pandemic – women, youth and persons with disabilities – are having the hardest time recovering.

The global report underlines how the pandemic has affected millions. The report's conclusion is similar to studies have shown in India too