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UN: Global economy at risk of falling into renewed recession
19.12.2012 08:02 "Agro Perspectiva" (Kyiv) —
Growth of the world economy has weakened considerably during 2012 and is expected to remain subdued in the coming two years, according to the United Nations in its latest issue of the World Economic Situation and Prospects 2013 (WESP), published Tuesday. The report says the global economy is expected to grow at 2.4 per cent in 2013 and 3.2 per cent in 2014 a significant downgrade from the UN’s forecast of half a year ago, UN Radio says.
And it warns that this pace of growth will be far from sufficient to overcome the continued jobs crisis that many countries are still facing.
Rob Voss is the team leader at the UN Department of Economic and Social Affairs.
«Some of the key issues are 3 core messages. First is that already this year as envisaged, we have seen quite a significant slow down of the global economy, much of Europe, is already mired back into a recession trapped in a vicious circle of debt, low grow and high unemployment. But it is more broader than that. Also several emerging market economies China, Brazil, India and some others have slowed significantly during year in part because the global slow down and for other parts because of their home grown domestic challenges.»
The report says different policies are needed to address the continued job crisis, warning that with the existing policies and growth trends, it may take at least another five years for Europe and the United States to make up for the job losses caused by the Great Recession of 2008–2009.
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