World economic growth is projected to slow to 1.9% this yr from an estimated 3% in 2022, in accordance to a United Nations (UN) report launched on Wednesday that blamed the coronavirus illness 2019 (COVID-19) pandemic, Russia’s warfare in Ukraine, excessive inflation, and the local weather disaster.
The World Economic State of affairs and Prospects report stated this is able to mark one of many lowest growth charges in current a long time.
“Global growth is forecast to moderately pick up to 2.7 percent in 2024, if, as expected, some macroeconomic headwinds begin to subside next year,” it stated. “The near-term economic outlook remains highly uncertain, however, as myriad economic, financial, geopolitical and environmental risks persist.”
The Worldwide Financial Fund (IMF) is due to launch its World Economic Outlook replace later this month, however IMF head Kristalina Georgieva stated final week that she noticed no “dramatic improvement” in its present 2023 world growth forecast of two.7%, down from round 3.2% final yr.
In October, the IMF put a 25% likelihood of worldwide growth falling beneath 2% subsequent yr — a phenomenon that has occurred solely 5 occasions since 1970.
The UN report by the world physique’s Division of Economic and Social Affairs stated that weakened growth in america, the European Union (EU) and different developed economies had adversely affected the worldwide economic system.
It projected that US gross home product would solely broaden 0.4% in 2023, in contrast to an estimated growth of 1.8% in final yr. The EU was forecast to develop by 0.2% in 2023, down from an estimated 3.3% in 2022.
The IMF in October forecast U.S. economic growth of 1% in 2023 and growth of 0.5% in the EU.
The report forecast economic growth in China would speed up to 4.8% this yr after the federal government deserted its zero-COVID-19 coverage and started easing financial and financial insurance policies. This compares to an anticipated 3% growth in 2022.
“But the reopening of the economy is expected to be bumpy. Growth will likely remain well below the pre-pandemic rate of 6 to 6.5 percent,” the report stated.
The IMF is forecasting Chinese language growth of 4.4% for 2023, Ms. Georgieva stated final week. — Reuters