<p>The global economy is set to grow by 4.7% this year thanks to a stronger-than-expected recovery in the United States, a report by the UN Conference on Trade and Development (UNCTAD) said on Thursday, revising up its previous forecast of 4.3%.</p>.<p>The upwards revision from its previous forecast made last September factors in an expected boost in US consumer spending on the back of progress distributing Covid-19 vaccines and a vast stimulus package, the report said.</p>.<p>"The global recovery that began in the third quarter of 2020 is expected to continue through 2021, albeit with a good deal of unevenness and unpredictability, reflecting epidemiological, policy and coordination uncertainties," the report said.</p>.<p>Earlier this month, the OECD also revised higher its growth forecast for this year to 5.6 % from 4.2 %.</p>.<p>However, the 22-page UNCTAD report called 'Out of the frying pan...into the fire?' said Covid-19 will have lasting economic consequences that will require continued government support. It said the main risk to the global outlook is a "misguided return to austerity".</p>.<p>The report estimates that last year there was a 3.9 % drop in output as the spread of the coronavirus sparked lockdowns across the world.</p>.<p>It called the impact "exorbitant", describing the "destruction of income on an unprecedented scale" with people in developing countries particularly hard hit.</p>.<p>Still, it says it would have been worse had central banks not taken preemptive action to avoid financial meltdown. Relief packages and a bounce-back in commodity prices as well as the fast-tracking of vaccine development also helped, the report said. </p>
<p>The global economy is set to grow by 4.7% this year thanks to a stronger-than-expected recovery in the United States, a report by the UN Conference on Trade and Development (UNCTAD) said on Thursday, revising up its previous forecast of 4.3%.</p>.<p>The upwards revision from its previous forecast made last September factors in an expected boost in US consumer spending on the back of progress distributing Covid-19 vaccines and a vast stimulus package, the report said.</p>.<p>"The global recovery that began in the third quarter of 2020 is expected to continue through 2021, albeit with a good deal of unevenness and unpredictability, reflecting epidemiological, policy and coordination uncertainties," the report said.</p>.<p>Earlier this month, the OECD also revised higher its growth forecast for this year to 5.6 % from 4.2 %.</p>.<p>However, the 22-page UNCTAD report called 'Out of the frying pan...into the fire?' said Covid-19 will have lasting economic consequences that will require continued government support. It said the main risk to the global outlook is a "misguided return to austerity".</p>.<p>The report estimates that last year there was a 3.9 % drop in output as the spread of the coronavirus sparked lockdowns across the world.</p>.<p>It called the impact "exorbitant", describing the "destruction of income on an unprecedented scale" with people in developing countries particularly hard hit.</p>.<p>Still, it says it would have been worse had central banks not taken preemptive action to avoid financial meltdown. Relief packages and a bounce-back in commodity prices as well as the fast-tracking of vaccine development also helped, the report said. </p>