cover image: Chapter II - The global economic context and its implications for sustainable


Chapter II - The global economic context and its implications for sustainable

4 Apr 2024

growth have all decelerated amid a series of major crises and The global shift in monetary policy since 2022—from economic and non-economic shocks, from the 2007/08 food ultra-loose to restrictive stances —has exacerbated price crisis and the 2008 world financial and economic crisis to public finance pressures and is weighing on investment the COVID-19 pandemic and escalating geopolitical conflict. [...] to the virus.2,3 The pandemic triggered the worst global economic crisis In the early 2000s, the global economy experienced a period of significant since the Great Depression, as widespread mobility restrictions led to a col- expansion driven by globalization, advancements in technology and robust lapse in consumer spending and investment, massive job losses and severe economic growth in large dev. [...] depository institutions held in the Federal Reserve surged from $1.6 billion Higher interest rates in developed countries will continue to increase the in January 2008 to $2.7 trillion in August 2014.14 In developing econo- debt-servicing burden of developing countries, particularly those with mies, deceleration of investment growth in the decade leading up to the high levels of dollar- or euro-de. [...] As figure II.10 shows, the growth of gross fixed capital forma- measure of economic efficiency and productivity, fell from 1.6 per cent be- tion in the world accelerated during the first half of the 2000s but declined tween 2000 and 2007 to 0.2 per cent between 2011 and 2019 in developing thereafter, in both developed and developing countries. [...] In the wake and—for many developing countries—diminishing productivity gains of the COVID-19 pandemic, the unemployment rate increased to 6.6 per from allocations of labour towards more productive sectors.21 In addition, cent in 2020, with the number of people unemployed increasing from limited employment opportunities in the formal sector and the absence of 194 million to 227 million in just one.
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United States of America