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The global economy shrank by 3% in 2020 and is expected to grow by 5.6% in 2021, but will remain 2% below pre-pandemic projections by 2022. The recovery is uneven, with the USA and China driving growth, while low-income countries and vulnerable groups are being left behind. Advanced economies are recovering with fiscal support and vaccination progress, but emerging markets and developing economies (EMDEs) are lagging due to limited macroeconomic support and vaccination coverage. The global recovery faces risks from COVID-19 waves and financial distress, with 100 million people expected to fall into extreme poverty in EMDEs by the end of 2021. Regional outlooks vary, with South Asia and Sub-Saharan Africa struggling with poverty and limited vaccine coverage. Global trade collapsed by 16% in 2020, and costs are soaring due to shipping and logistics challenges. Inflation is expected to rise, but remain within target ranges for advanced economies and some EMDEs. Policymakers must balance recovery with price and financial stabilization, and international assistance is needed to address unequal recovery and provide equitable vaccine access.