Emerging inflationary pressures and policy dilemma
Since the beginning of 2021, the world economy has been facing emerging upward inflationary pressures. For several countries, price dynamics became more worrying. By April, central banks in Belarus, Brazil, Georgia, Russian Federation, Turkey and Ukraine hiked policy interest rates, tightening policy stance to contain surging consumer prices. In the United States, policy debates on inflation are back. Some critics argued that the $1.9 trillion stimulus package rolled out in March will intensify inflationary pressures. While the policymakers in the United States are monitoring inflation closely, global financial markets are already factoring…
World Economic Situation And Prospects: May 2021 Briefing, No. 149
Upon request of the Economic and Social Council of the United Nations, the Committee for Development Policy undertook a comprehensive on the impact of COVID-19 on the LDC category. It has two main intended uses. First, it is an input to the 2021 triennial review, meant to enable the Committee to incorporate fully into its triennial reviews the impact of the COVID-19 crisis on LDCs and countries graduating from the LDC category. Second, it is an input to a possible contribution by the Committee to the forthcoming fifth United Nations Conference on the Least Developed Countries, to be held in Doha from 23 to 27 January 2022. As a result, the study contains suggestions for support for LDCs and…
Comprehensive Study on the Impact of COVID-19 on the Least Developed Country Category
Adding fuel to the fire? Inequality and the spread of COVID-19
The World Health Organization officially declared COVID-19 a ?pandemic? one year ago. Since then, the virus has spread like wildfire, upending social and economic life and causing an enormous?and still rising?human toll. As of 19 March 2021, the COVID-19 pandemic had infected more than 122 million people and killed about 2.7 million worldwide. Furthermore, while the vaccination campaigns gain pace globally?more than 400 million single doses have already been administered?the prospects to bring the pandemic to an end and achieve herd immunity are still uncertain. Virus mutations, pandemic fatigue and the uneven global…
World Economic Situation And Prospects: April 2021 Briefing, No. 148
The World Economic Situation and Prospects (WESP) 2021 addresses the issue of increasing levels of fiscal deficits and public debt, among other topics. To build back better through the SDGs, fiscal policy needs to play an active role. The pandemic?s remaining uncertainties require additional fiscal measures beyond the stimulus measures implemented last year. Such actions are required to prevent the world economy from another implosion of aggregate demand. Governments still need to combat the COVID-19 pandemic and act to alleviate the pandemic?s socioeconomic impact?rising unemployment, poverty, and inequality. Total public debt globally is projected to grow further this year, well beyond…
World Economic Situation And Prospects: March 2021 Briefing, No. 147
Global economic recovery remains precarious ? the projected rebound of 4.7 per cent will barely offset 2020 losses
Global economic outlook
The World Economic Situation and Prospects (WESP) 2021 warns that the COVID-19 pandemic, which has delivered a heavy blow to economic activities worldwide, may exert devastating long-run socio-economic effects, unless global policy responses can ensure a robust and sustainable recovery. Those actions should comprise smart investments in economic, societal and climate resilience, revitalization of global trade, avoidance of premature austerity policies and addressing widening inequalities.
In 2020, world output shrank by 4.3 per cent, over three times…
World Economic Situation And Prospects: February 2021 Briefing, No. 146
A once-in-a-century crisis?a Great Disruption unleashed by the COVID-19 pandemic?hit the world economy in 2020. The pandemic reached every corner of the world, infecting more than 90 million and, so far, has killed close to 2 million people worldwide. Governments around the world responded rapidly?and boldly?to stem the health and economic contagion of the crisis. Fiscal and monetary stimulus packages were quickly rolled out to save the economy. The crisis responses, however, entailed difficult choices between saving lives and saving livelihoods, between speed of delivery and efficiency, and between short-term costs and long-term impacts.
"We are facing the worst health and economic crisis…
World Economic Situation and Prospects 2021
As the COVID-19 pandemic outbreak in March 2020 threatened to drag the global economy into a deep and protracted crisis, central banks once again became the first line of defense for countries across the world. In 2020, about 94 monetary authorities have cut their policy rates, often at emergency meetings. Amid acute stress in financial markets, central banks also swiftly deployed a wide range of policy measures, aimed at preventing a liquidity crunch and supporting credit flows.
With interest rates near the zero bound, central banks in the major developed economies largely responded to the crisis through the introduction of quantitative easing measures on an unprecedented scale. The United…
World Economic Situation And Prospects: January 2021 Briefing, No. 145
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