Forests and Economies

Forests play an essential role in sustaining global and national, inclusive and resilient economies. They generate employment, support rural and urban livelihoods, underpin food systems, supply raw materials and energy, and provide ecosystem services that enable productivity across sectors. Yet, despite their wide-ranging economic, social and environmental contributions, forests remain systematically undervalued in economic planning, investment strategies and financial systems.

Forests underpin the global economy.
More than 1.6 billion people depend on forests for subsistence, income or employment. From timber and non-wood forest products to tourism and bioeconomy value chains, forests contribute directly to growth and development — particularly in low-income and forest-rich countries.

Forests are economic infrastructure.
Beyond market products, forests regulate water supplies, protect soils, store carbon and reduce disaster risks. These ecosystem services sustain agriculture, energy systems, cities and industry — forming the natural foundation of many sectors.

Much of forests’ value remains invisible.
Conventional economic indicators capture mainly formal, cash-based transactions. Subsistence use, informal employment and ecosystem services are often excluded from national accounts, leading to systematic undervaluation and underinvestment.

Forests are lifelines in times of crisis.
During economic shocks, conflicts or climate-related disasters, forests provide food, fuel, shelter and income — acting as safety nets for vulnerable communities and strengthening resilience.

Investment is not keeping pace with ambition.
Despite their central role in achieving the Sustainable Development Goals and the Global Forest Goals, financing for sustainable forest management remains far below what is required to halt deforestation and restore degraded landscapes.

The International Day of Forests is observed each year on 21 March, following its proclamation by the United Nations General Assembly. It is urgent to recognise forests not as peripheral environmental assets, but as engines of inclusive growth, poverty reduction and long-term prosperity.

SOURCE: UN DESA Voice, March 2026
https://desapublications.un.org/un-desa-voice/things-you-need-to-know/m…