UN / WORLD ECONOMIC SITUATION AND PROSPECTS

Preview Language:   Original
13-May-2020 00:01:58
UN Assistant Secretary-General for Economic Development Elliot Harris said the global economy “has come to a virtual standstill during the second quarter of 2020” as a result of the COVID-19 pandemic, adding that “we are now facing the grim reality of a severe recession, one of a magnitude not seen since the great depression.” UNIFEED

Available Language: English
Type
Language
Format
Acquire
/
English
Other Formats
Description
STORY: UN / WORLD ECONOMIC SITUATION AND PROSPECTS
TRT: 1:58
SOURCE: UNIFEED
RESTRICTIONS: NONE
LANGUAGE: ENGLISH/ NATS

DATELINE: 13 MAY 2020, NEW YORK CITY

SHOTLIST:

FILE – NEW YORK CITY

1. Wide shot, United Nations headquarters exterior

13 MAY 2020, NEW YORK CITY

2. SOUNDBITE (English) Elliot Harris, Assistant Secretary-General for Economic Development, United Nations:
“The global economic outlook, as you can imagine, has changed drastically since the launch of the WESP 2020 in January of this year. The COVID-19 pandemic has resulted in the tragic loss of hundreds of thousands of lives while straining national healthcare systems around the world. With the large-scale restrictions of economic activities and heightened uncertainties, the global economy has come to a virtual standstill during the second quarter of 2020. We are now facing the grim reality of a severe recession, one of a magnitude not seen since the great depression.

FILE – NEW YORK CITY

3. Wide shot, United Nations headquarters exterior

13 MAY 2020, NEW YORK CITY

4. SOUNDBITE (English) Elliot Harris, Assistant Secretary-General for Economic Development, United Nations:
“The twin health and economic crises present very difficult policy tradeoffs. Governments needs to contain the spread of the pandemic, and at the same time they need to minimize its economic impact. The balance between saving lives and saving jobs is as difficult as it is necessary to strike.”

FILE – NEW YORK CITY

5. Wide shot, United Nations headquarters exterior

13 MAY 2020, NEW YORK CITY

6. SOUNDBITE (English) Elliot Harris, Assistant Secretary-General for Economic Development, United Nations:
“In any event, unless there are major breakthroughs in vaccine development, economic activities will remain significantly limited. And any fiscal measure will be unlikely to be fully effective at stimulating investment and growth.”

FILE – NEW YORK CITY

7. Wide shot, United Nations headquarters exterior

13 MAY 2020, NEW YORK CITY

8. SOUNDBITE (English) Elliot Harris, Assistant Secretary-General for Economic Development, United Nations:
“How quickly and effectively the international community will be able to contain the public health and socioeconomic fallouts of the pandemic will determine whether, and how soon, the world can return to pre-crisis levels of economic activity. In any event, we must now be ready to embrace a new normal in the future. And the path that the global recovery takes will decide whether the new normal can deliver sustainable development by 2030. The prospects for this get dimmer with each day that the pandemic is not being brought under control.”

FILE – NEW YORK CITY

9. Wide shot, United Nations headquarters exterior

STORYLINE:

UN Assistant Secretary-General for Economic Development Elliot Harris said the global economy “has come to a virtual standstill during the second quarter of 2020” as a result of the COVID-19 pandemic, adding that “we are now facing the grim reality of a severe recession, one of a magnitude not seen since the great depression.”

Presenting the World Economic Situation and Prospects (WESP) report at a virtual press conference, Harris said the global economic outlook “has changed drastically” since year, with the COVID-19 pandemic resulting in the tragic loss of hundreds of thousands of lives while straining national healthcare systems around the world. He said, “With the large-scale restrictions of economic activities and heightened uncertainties, the global economy has come to a virtual standstill during the second quarter of 2020. We are now facing the grim reality of a severe recession, one of a magnitude not seen since the great depression.”

The WESP report for mid-2020 projected the world economy to shrink by 3.2 per cent in 2020. Under the baseline scenario, GDP growth in developed countries will plunge to –5.0 per cent in 2020, while output of developing countries will shrink by 0.7 per cent. The projected cumulative output losses during 2020 and 2021—nearly $8.5 trillion—will wipe out nearly all output gains of the previous four years.

Harris said efforts to contain the pandemic fell short of market expectations causing extreme financial volatility and inflicting damages on the real economy at unprecedented scale and speed. He said low wage and low skill workers were disproportionately affected by the shutdowns, and stressed that many people were at risk of falling into poverty in developed and developing countries.

The Assistant Secretary-General said the most pessimistic scenario projects an additional 160 million people living in poverty by 2030. He said with grow declining and poverty rising, economic inequality would also increase which will intensify discontent and instability in many parts of the world.

SOUNDBITE (English) Elliot Harris, Assistant Secretary-General for Economic Development, United Nations:
“The twin health and economic crises present very difficult policy tradeoffs. Governments needs to contain the spread of the pandemic, and at the same time they need to minimize its economic impact. The balance between saving lives and saving jobs is as difficult as it is necessary to strike.”

Harris said fiscal stimulus interventions have been uneven across countries. He noted that many developing countries were already confronting sizable fiscal deficits and public debts prior to the crisis and were now experiencing sharp declines in foreign exchange flows which prevented them from introducing sufficiently large fiscal stimulus packages.

SOUNDBITE (English) Elliot Harris, Assistant Secretary-General for Economic Development, United Nations:
“In any event, unless there are major breakthroughs in vaccine development, economic activities will remain significantly limited. And any fiscal measure will be unlikely to be fully effective at stimulating investment and growth.”

The Assistant Secretary-General noted that central banks in developing countries are responding to the pandemic with interest rate cuts and acid purchases to inject liquidity and stabilize financial markets, however, on other hand some developing economies are experiencing large capital outflows as investors flee to safe havens causing significant currency depreciation and tighter credit conditions. Harris stressed that robust international coordination was critical not only to contain the pandemic but also to minimize negative spillover effects and to assist hard hit countries.

Harris said, “How quickly and effectively the international community will be able to contain the public health and socioeconomic fallouts of the pandemic will determine whether, and how soon, the world can return to pre-crisis levels of economic activity.” He said the world must not ready to “embrace a new normal in the future,” adding that the path that the global recovery takes will decide whether the “new normal can deliver sustainable development by 2030.” He underscored, however, that the prospects for this “get dimmer with each day that the pandemic is not being brought under control.”
Series
Category
Personal Subjects
Creator
UNIFEED
Alternate Title
unifeed200513c
Asset ID
2544990