Archive for January 1st, 2013

01/01/2013

Global Economy at Great Risk – UN

Human Wrongs Watch

New York – 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)*.

Image: UN

Image: UN

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.

This pace of growth will be far from sufficient to overcome the continued jobs crisis that many countries are still facing.

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.

Weaknesses in the major developed economies are at the root of the global economic slowdown.

The WESP report stresses that most of them, but particularly those in Europe, are trapped in a vicious cycle of high unemployment, financial sector fragility, heightened sovereign risks, fiscal austerity and low growth.

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