March 10, 2020

Andrew Campbell 

According to the latest report from the UN’s trade and development agency, UNCTAD, besides the effect of human health caused by COVID-19, the anxiety of the world’s economy would also cost up to $1 trillion in 2020. Richard Kozul-Wright, Director of Division on Globalization and Development Strategies at UNCTAD, pointed out that a 2% slowdown of the world’s economy this year is estimated. 

UNCTAD predicted that some countries would face recession and warned the world might be at the risk of "widespread insolvency." Referring to Mr. Kozul-Wright, the economy of Europe and the Eurozone is vulnerable and has already performed “extremely badly” at the end of the last year. While European countries such as Italy and Germany feel the stress of recession, the Latin American region faces the same problem as well. 

As stated in the report from UNCTAD, recovery of the world’s economy depends on the time to figure out the vaccine, the tension to the people, and the transmission of the COVID-19. With the worries about how much the central banks could handle the issue, UNCTAD suggested the top economies in the world to integrate for a better solution. 

Photo:Webshot.