UN raises global economic growth outlook on increased US consumer spending

20 Mar, 2021 12:40

Global economic growth will accelerate faster than expected this year, according to renewed data announced by the United Nations Conference on Trade and Development (UNCTAD).

UNCTAD expects the global economy to grow by 4.7% in 2021 compared to the previously forecast 4.3%.

“The global recovery that began in the third quarter of 2020 is expected to continue through 2021, albeit with a good deal of unevenness and unpredictability, reflecting epidemiological, policy and coordination uncertainties,” the report titled, ‘Out of the frying pan… into the fire?’ reads.

Also on rt.com Fitch upgrades China’s growth rate due to strong export recovery & global demand

The upwards revision from its previous outlook that was made in September is based on a projected increase in US consumer spending attributed to the latest progress in the distribution of Covid-19 vaccines. The agency also cites the vast stimulus package recently adopted by the US government as one of the factors.

According to the report, the long-lasting impact of Covid-19 will require continued government support. The UN highlights that a “misguided return to austerity” poses a major risk to global economic prosperity.

Also on rt.com One third of all countries worldwide COMPLETELY closed to international tourism – UN

Worldwide lockdowns tied to the coronavirus pandemic brought on a 3.9% drop in output, the agency’s estimates show.

The organization also said that the economic consequences of Covid are exorbitant, while the destruction of income is on an unprecedented scale with people in developing countries particularly hard hit.

Earlier, the Organization for Economic Co-operation and Development (OECD) also published an upwards projection, raising the expected economic growth this year from 4.2% to 5.6%.

For more stories on economy & finance visit RT's business section