Impact of the COVID-19 Pandemic on Trade and Development Report: UNCTAD

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News: United Nations Conference on Trade and Development(UNCTAD) has released a report titled “Impact of the COVID-19 Pandemic on Trade and Development: Transitioning to a New Normal”.

Facts:

• Aim: The report provides a comprehensive assessment of the impact of COVID-19 Pandemic on Trade and Development.

Key Takeaways.

• The global economy would contract 4.3% this year due to the pandemic. This could send an additional 130 million people into extreme poverty.
• The United Nations’ Sustainable Development Agenda 2030 will be derailed unless immediate policy actions are taken especially in favour of the poorest.
• Global poverty is also on the rise for the first time since the 1998 Asian financial crisis.In 1990, the global poverty rate was 35.9%.By 2018 it had been curtailed to 8.6% but has already inched up to 8.8% this year and will likely rise throughout 2021.

Recommendations:

• Increase the international assistance which would include offering debt relief to many poorer nations so they have the fiscal space needed to address the pandemic’s economic impacts on their populations.
• To reshape global production networks to be more green, inclusive, and sustainable while simultaneously resetting the multilateral system to support the most vulnerable and deliver on climate action.