Russia Economic Report, No. 45, May 2021 : Russia’s Economic Recovery Gathers Pace
The COVID-19 pandemic continues to disrupt activity across the world, casting wide uncertainty around GDP projections. Despite the protracted and uncertain nature of the pandemic, global GDP growth is forecast to recover to 4 percent in 2021 and to...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/204841621980183498/Russia-Economic-Report-Russia-s-Economic-Recovery-Gathers-Pace-Special-Focus-on-Cost-Effective-Safety-Nets http://hdl.handle.net/10986/35653 |
| Summary: | The COVID-19 pandemic continues to
disrupt activity across the world, casting wide uncertainty
around GDP projections. Despite the protracted and uncertain
nature of the pandemic, global GDP growth is forecast to
recover to 4 percent in 2021 and to moderate to 3.8 percent
in 2022 under baseline assumptions established in January
2021. The baseline recovery, however, is not sufficient to
return global output to pre-pandemic projections by 2022,
with levels expected to be 4.4 percent below pre-pandemic
projections next year. COVID-19 has reversed hard-won gains
in poverty reduction, with the pandemic expected to push
over 100 million people into extreme poverty by the end of
2021. Accompanying the rise in extreme poverty is that of
food insecurity, especially in light of the steep falls in
household incomes due to widespread job losses – many of
which are not anticipated to be regained this year. The
pandemic is expected to have longer-term scarring effects on
productivity growth and potential output, as the erosion of
business confidence further weakens investment and as human
capital accumulation slows due to a deterioration in health
outcomes, extended school closures, and prolonged
unemployment. Global trade continues to recover, but with
wide variations across countries and sectors. Global
financing conditions remain accommodative amid ongoing
vaccination drives in major economies. |
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