According to trade and development body UNCTAD, the global economy posted its sharpest annual drop in output since records began to be aggregated in the 1940s, “with no region spared”.
“Multilateralism has essentially lost its mojo”, said Richard Kozul-Wright, head of the Division on Globalization and Development Strategies at UNCTAD, in a year that saw an estimated 3.9 per cent drop in global output – 0.4 per cent better than the forecast in mid-2020 – that was largely owing to stronger performances in China and the United States.
‘Weak’ support for the poorest
Speaking to journalists in Geneva, the UN economist maintained that debt-relief initiatives for poorer countries expected by the G20 group of advanced economies had been “extremely weak”, at a time when developing countries feared losing much-needed foreign direct investment.
Efforts to organise a fair and equitable COVID-19 vaccine rollout had also showed “serious weaknesses in the global health architecture”, Mr. Kozul-Wright maintained, while the first year of the coronavirus crisis saw “destruction of income on an unprecedented scale, an estimated $5.8 trillion, and with already vulnerable parts of the population bearing the brunt”, according to UNCTAD’s Trade and Development report.
In concrete terms, the coronavirus crisis triggered an effective loss of 255 million full-time jobs worldwide, according to the International Labour Organization (ILO), cited by UNCTAD.
Second wave dashes revival
Although the global economic recovery began in the third quarter as countries started to lift restrictions, UNCTAD noted that a second wave of virus hit earlier than expected in the final quarter of 2020 which dampened the recovery, most notably in Western Europe.
Countering this downward pressure on growth were vaccine breakthroughs and improved management of lockdown measures, both of which offset COVID-19’s overall economic impact, the UN report said.
Latin American resilience
Regionally, UNCTAD data indicates that East Asia and Latin America fared “a little better than expected” – likely shored up by Brazilian growth – but Europe, India and South Africa did worse.
“Positive surprises” were Brazil, Turkey and the United States, thanks to large relief measures that acted as a shock-absorber for recession, while rising commodity and asset prices spurred growth.
The rebound in raw materials prices also benefited “several” developing African economies, UNCTAD continued, while the region as a whole saw lower-than-expected pressure on public health systems from COVID-19, UNCTAD said.
Food insecurity concerns
The UN body cited concerns nonetheless that more volatility may be emerging, particularly in markets of some agricultural commodities, with a threat to food security in several countries
It also noted that losses in global growth ‘will persist as even the most optimistic projections for the bounce back of growth will not cover the shortfall of income for several years”.
For 2021, UNCTAD announced global growth of 4.7 per cent – 0.6 per cent better than its previous mid-2020 forecast.
But this “more optimistic scenario” depends on international support for three things, UNCTAD insisted: “improved vaccination and disease containment in advanced and middle-income countries, a speedy transition from economic relief policies to recovery-policies in the largest economies of the world; and no financial crash of global significance”.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
