The Strategist

UN improves global GDP growth estimate for 2021 to 5.4%

05/12/2021 - 03:24

World economic growth in 2021 is expected to be 5.4%, according to the UN Global Economic Monitoring Division's mid-year report.

The global GDP growth forecast was improved to 4.7% in January. The decline of the global economy in 2020 was 3.6%.

Economic recovery in China and in the US has improved global growth prospects, but they are threatened by an increase in the coronavirus infections and "insufficient progress in vaccination in many countries", the department said. 

UN Chief Economist Elliot Harris said inequities in access to vaccination "pose a significant risk to an already uneven and fragile global economic recovery".

Countries dependent on manufacturing industries have been better off during the recovery, the report said. 

UN analysts note that global merchandise trade figures have already surpassed pre-pandemic levels. In particular, high demand for personal protective equipment and electronic and electrical equipment has contributed to this.