World economy growing “modestly”: UN report (infographic)
According to a recently released report by the United Nations on the world economic situation and its prospects in 2015, the world economy continues to grow at a modest pace.
Growth of world gross product is projected at 2.8 per cent in 2015, accelerating to 3.1 per cent in 2016. The growth divergence between various regions is widening in 2015, owing to differing impacts from the recent decline in the prices of oil and other commodities, as well as country-specific factors.
Short-term growth prospects of heavily commodity-dependent countries have worsened considerably. By contrast, commodity importers are benefiting from the lower prices in the form of reduced inflationary, fiscal and balance-of-payment pressures. While the recovery in developed economies is improving, many countries still face considerable headwinds from the legacies of the global financial crisis.
The overall subdued performance of the world economy in recent years has raised concerns of a “new normal” of lower growth. The broad-based weakness in investment worldwide not only holds back current growth, but also reduces potential growth in the future, the report argues.
The major downside risks to the baseline outlook are related to the impact of the upcoming monetary policy normalisation in the US, ongoing uncertainties in the euro area, potential spillovers from geopolitical conflicts, and persistent vulnerabilities in emerging economies.
To mitigate these risks and ensure a return to strong, sustainable and balanced growth, a broad set of policy measures at the domestic, regional and global level is needed. The report identifies key challenges in the areas of monetary, fiscal, labour market and trade policies, underlining the need for strengthened international policy coordination. Such coordination becomes ever more critical as the member states of the United Nations are expected to adopt a new financing framework for sustainable development and an ambitious post-2015 sustainable development agenda.
[caption id="attachment_25025" align="alignleft" width="300"] Click to enlarge[/caption] According to a recently released report by the United Nations on the world economic situation and its prospects in 2015, the world economy continues to grow at a modest pace. Growth of world gross product is projected at 2.8 per cent in 2015, accelerating to 3.1 per cent in 2016. The growth divergence between various regions is widening in 2015, owing to differing impacts from the recent decline in the prices of oil and other commodities, as well as country-specific factors. Short-term growth prospects of heavily commodity-dependent countries have worsened considerably. By contrast,...
According to a recently released report by the United Nations on the world economic situation and its prospects in 2015, the world economy continues to grow at a modest pace.
Growth of world gross product is projected at 2.8 per cent in 2015, accelerating to 3.1 per cent in 2016. The growth divergence between various regions is widening in 2015, owing to differing impacts from the recent decline in the prices of oil and other commodities, as well as country-specific factors.
Short-term growth prospects of heavily commodity-dependent countries have worsened considerably. By contrast, commodity importers are benefiting from the lower prices in the form of reduced inflationary, fiscal and balance-of-payment pressures. While the recovery in developed economies is improving, many countries still face considerable headwinds from the legacies of the global financial crisis.
The overall subdued performance of the world economy in recent years has raised concerns of a “new normal” of lower growth. The broad-based weakness in investment worldwide not only holds back current growth, but also reduces potential growth in the future, the report argues.
The major downside risks to the baseline outlook are related to the impact of the upcoming monetary policy normalisation in the US, ongoing uncertainties in the euro area, potential spillovers from geopolitical conflicts, and persistent vulnerabilities in emerging economies.
To mitigate these risks and ensure a return to strong, sustainable and balanced growth, a broad set of policy measures at the domestic, regional and global level is needed. The report identifies key challenges in the areas of monetary, fiscal, labour market and trade policies, underlining the need for strengthened international policy coordination. Such coordination becomes ever more critical as the member states of the United Nations are expected to adopt a new financing framework for sustainable development and an ambitious post-2015 sustainable development agenda.
