New York, 15 January 2022 (TDI): The UN Department of Economic and Social Affairs (UNDESA) recently published the 2022 World Economic Situation and Prospects (WESP) report.
The report details the constant challenges the world continues to face due to the advent of new variants. Supply chains remain affected while labor market shortages are causing major disruptions around the world.
Persistent inflation is also problematic. Growth in China, Europe, and the United States slowed down considerably as supply chain disruptions emerged and inflationary pressure began to take hold. This occurred in spite of considerable recovery in 2021.
“In this fragile and uneven period of global recovery, the World Economic Situation and Prospects 2022 calls for better targeted and coordinated policy.” – Antonio Guterres
According to Antonio Guterres, the UN Secretary-General highlighted that financial measures at the national and international levels need to be taken as the time is now to close the inequality gaps within and among countries.
He stated that if the world works in solidarity, as one human family, then 2022 can be made into a true year of recovery for people and economies alike. The UNDESA report estimates that developing countries are set to suffer more long-term than developed countries.
Latin America is set to see lower growth which will result in more poverty. In Africa, the number of people living in absolute poverty is set to increase throughout 2023. Developed countries are set to recover almost completely in the same time period.
The report indicates that social safety nets put in place by governments around the world should stay in effect in order to ensure social protection and the protection of jobs.
As inflation continues to rise, the interest rate has gone up many-fold and many low-income countries are facing ever-increasing debt burdens. Additional borrowing since the pandemic began has put many countries on the brink of a debt crisis.
Debt relief may be the only way out for them, says the report. Liu Zhenmin, the Under-Secretary-General of the UNDESA, enunciates that without a sustained and coordinated global approach to contain Covid-19, the pandemic will continue to pose the greatest risk.
The efforts must include universal access to vaccines to eradicate the pandemic. Such policies will eventually lead to an inclusive and sustainable recovery of the world economy.
The report indicates that for the next two years employment is likely to remain low with Europe and the United States at historically low levels, lower employment is only worsening supply chain disruptions and inflation.
The situation is even worse in low-income countries, Latin America, Africa, and Asia are set to see a low recovery of jobs for the next two years.
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