World real GDP expands 5.7% in 2021, fastest growth since 1973: UNCTAD

After a sharp contraction of 3.4 per cent in 2020, the world’s real gross domestic product (GDP) expanded by 5.7 per cent in 2021, the fastest annual growth since 1973, according to the UN Conference on Trade and Development (UNCTAD). In 2022, GDP growth is nowcast to slow down to 3.3 per cent. Growth was unevenly distributed across regions in 2021.

Large differences in GDP per capita persist throughout the world. In 2021, most developed economies produced an output per person greater than $30,000, with economies in Eastern and Northern Europe as the main exceptions.

After a sharp contraction of 3.4 per cent in 2020, the world’s real gross domestic product (GDP) expanded by 5.7 per cent in 2021, the fastest annual growth since 1973, according to the UN Conference on Trade and Development (UNCTAD). In 2022, GDP growth is nowcast to slow down to 3.3 per cent. Growth was unevenly distributed across regions in 2021.

By contrast, almost half of the developing economies in Africa—all of them least developed countries (LDCs)–recorded a per capita output of less than $1,300. Most developing economies in the Americas, Asia and Oceania reached an output higher than $3,000 per person.

Developed regions bounced back from the COVID-19 pandemic with a growth rate of 5 per cent. After a strong contraction of 2.7 per cent in 2020, developing Africa’s GDP expanded by 5 per cent in 2021.

Developing Asia’s GDP growth rebounded from minus 0.4 per cent to 7 per cent in 2021. Developing America’s GDP increased by 6.2 per cent in 2021 following a 7.4 per cent drop in 2020.

LDCs’ GDP grew by 2 per cent in 2021, remaining below the 7 per cent target set by the 2030 Agenda for Sustainable Development. At the same time, their GDP per capita declined by 0.4 per cent.

Over the last 10 years, the global distribution of nominal GDP across economies has trended towards more equal. For example, in 2011, the poorest economies, accounting for 85 per cent of the world’s population, contributed 36 per cent to world GDP. By 2021, their share in GDP was 40 per cent. The last five years, however, did not show any clear reduction in inequality, UNCTAD noted.

The highest GDP per capita, in nominal terms, was recorded for Luxembourg ($132,918), Bermuda ($126,972), Cayman Islands ($99,007), Ireland ($97,753) and Switzerland, Liechtenstein ($93,217).

Fibre2Fashion News Desk (DS)