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MITIGATING THE IMPACT OF COVID-19 ON GAINS IN FINANCIAL INCLUSION
SECTION 4
THE ROAD AHEAD
The global economy contracted 3.5 percent in 2020 due to the economic shock created by COVID-19. Although nearly all countries have been negatively affected, the impact has been higher in emerging and developing economies.63 It will take several years for the world’s economy to fully recover from the damage caused by the crisis on household incomes, economic equality, poverty and factors linking to the other SDGs.
63 According to the April 2021 World Economic Outlook (IMF), cumulative per capita income losses over 2020–22, compared to pre-pandemic projections, are equivalent to 20 percent of 2019 per capita GDP in emerging markets and developing economies (excluding China), while in advanced economies the losses are expected to be relatively smaller, at 11 percent. IMF. 2021. The IMF's Response to COVID-19. Available at: https://www.imf.org/en/About/FAQ/ imf-response-to-covid-19#Q4
