“We have always known that heedless self interest was bad morals, we now know that it is bad economics.”
― Franklin D. Roosevelt
Growth of the world economy has weakened considerably during 2012 and is expected to remain subdued in the coming two years. 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. The report also foresees a much slower pace of poverty reduction in many developing countries and a narrowing fiscal space for investments in critical areas for achieving the MDGs.
The World Economic Situation and Prospects (WESP) is jointly produced by DESA, the UN Conference on Trade and Development (UNCTAD) and the five United Nations Regional Commissions and is the definitive report on the state of the world economy.
“We have identified three major economic risks,” said Pingfan Hong, Chief of the Global Economic Monitoring Unit of DESA’s Development Policy and Analysis Division, when the report’s first chapter was launched on 18 December 2012. Mr. Hong pointed to the deterioration of the euro crisis, the US fiscal cliff and a possible hard landing for some large developing countries.
“To mitigate these risks, policymakers worldwide are greatly challenged,” underscored Mr. Hong, also describing how the world economy is still struggling to recover five years after the eruption of the global financial crisis.
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 forecast six months ago. This growth pace will not be enough to overcome the continued jobs crisis faced by many countries. With 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.
With the full report being launched this week, it also provides detailed forecasts for different regions of the world.
Tiruvannamalai Education 