C H A P T E R 1
G L O B A L E C O N O M I C P R O S P E C T S | J A N U A R Y 2 0 2 1
22
In
commodity exporters
, the dual shock of
pandemic-related economic disruptions and
plunging commodity prices generated substantial
headwinds to activity in 2020.
The rebound in
industrial production across commodity exporters
has been tepid, with production remaining below
pre-pandemic levels (figure 1.11.F). The weakness
reflects a decline in extractive investment and, for
oil exporters, OPEC+ oil production cuts and
still-subdued oil prices (World Bank 2020c).
In several
low-income countries,
rising caseloads
forced governments to keep some containment
measures in effect during the second half of
2020 (Ethiopia,
Mozambique, Rwanda, Uganda;
box 1.2). In all, output in LICs is estimated to
have shrunk 0.9 percent in 2020—the group’s
first contraction in a generation. Among fragile
and conflict-affected LICs—already struggling
with limited fiscal space and state capacity—the
collapse
in activity was far steeper, with output
falling by an estimated 3.9 percent (Afghanistan,
Central African Republic). Output among other
LICs also weakened appreciably,
as tourism
revenues tumbled, consumption fell, and invest-
ment came to a halt (Madagascar, Rwanda).
Outlook
Growth outlook
COVID-19 has dealt a substantial blow to the
outlook in all EMDE regions (box 1.3; chapter 2).
The pandemic is estimated to have erased at least
10 years of per capita income gains in more than a
quarter of EMDEs in 2020 (figure 1.12.A).
EMDE output is projected to expand 5 percent in
2021, predicated on firming external demand and
improved
pandemic management, aided by
vaccine rollouts in major EMDEs (figure 1.12.B).
Excluding China, however, growth for EMDEs
this year will be more subdued, at only 3.4
percent, reflecting
lingering disruptions from
outbreaks in many EMDEs. Despite the projected
aggregate recovery in 2021, forecasts in roughly
two-thirds of EMDEs were downgraded—
especially in Europe and Central Asia (ECA),
where a number of economies are experiencing a
sharp resurgence of the virus.
private consumption was less severe in EMDEs
that used available fiscal
policy space to expand
social safety nets and support employment. The
resilience of remittances in some countries also
helped to cushion the blow to households (figure
1.11.D; Quayyum and Kpodar 2020; World Bank
2020j). Despite these mitigating factors, mounting
job losses resulted in labor incomes falling between
10 to 15 percent across EMDE regions (figure
1.11.E; ILO 2020).
Do'stlaringiz bilan baham: