According to the United Nations Economic Report – UN Department of Economic and Social Affairs, the way the economic system is shaky is similar to the time of the Great Depression. It is feared that the world’s economic system may shrink by 3.2 percent and will be only slightly better in 2021. In developed countries, GDP can be reduced by 5 percent and in developing countries by 7 percent, the world economy can suffer a loss of $ 8.5 trillion which can eliminate the benefits of the last four years.
According to estimates, global trade may be reduced by 15 per cent. With 90 per cent of the world in lockdown, 30 million jobs can only go to the US. The biggest loss is in tourism, retail, hospitality, transportation.
The gap between rich and poor will widen and 34.3 million more people can go into extreme poverty. Covid-19 is a big test of globalization as many countries have banned the export of essential goods. If the disease spreads due to globalization and there is no help, then the countries will retreat, so the United Nations has appealed for better international cooperation.
