In 2021, the global economy will bounce back with growth of 5.3%, the fastest in nearly 50 years. The rebound is, however, highly uneven along regional, sectoral and income lines, according to UNCTAD’s Trade and Development Report 2021.
- Growth deceleration next year could prove sharper than expected if policymakers lose their nerve or heed misguided calls for deregulation and austerity.
- Policymakers in advanced economies have not yet woken up to the size of the shock to developing countries or its persistence. Many countries in the South have been hit much harder than during the global financial crisis, while their now-heavier debt burden reduces their room for fiscal policy.
- The pandemic response in developed countries has activated a resurgent state and suspended fiscal constraints, but international rules and practices lock developing countries into pre-pandemic responses and a…