The global growth trajectory has witnessed significant fluctuations in the recent years. The Covid-19 pandemic resulted in a sharp contraction of 2.8 per cent in the global economy during 2020, which rebounded strongly in 2021. However, growth slowed again in 2022 due to inflationary pressures and geopolitical tensions. This period of economic turbulence resulted in a cumulative loss of about US$9 trillion in global GDP over 2020 and 2021 as per UNCTAD estimates, surpassing the impact of the Global Financial Crisis of 2008.
The aftermath of the pandemic saw an unprecedented surge in global debt, reaching historical levels and particularly affecting nations with constrained fiscal space. Moreover, the progress towards achieving the Sustainable Development Goals (SDGs) was significantly impeded, as the financing gap for these goals widened. Alongside, concerns regarding global macroeconomic stability surfaced as policymakers and central banks responded with unconventional monetary and fiscal measures to cushion the economic blow but it led to massive capital outflows and mounting debt levels.
Given this backdrop, the Confederation of Indian Industry (CII) has released a report titled ‘Global Economic Recovery: Towards Overall Global Prosperity’. This report carries a comprehensive analysis of the current global economic trajectory, identifies the challenges that the global community faces and proffers recommendations to traverse the path of global uncertainty. The report highlights the necessity for collective action to address the emerging global challenges and provides policy suggestions to pave the way for a resilient and sustainable economic recovery.