The United Nations forecast Wednesday that global economic growth will fall significantly to 1.9 per cent this year as a result of the food and energy crisis sparked by the war in Ukraine, the ongoing impact of the COVID-19 pandemic, persistently high inflation and the climate emergency.
Painting a gloomy and uncertain economic outlook, the U.N. Department of Economic and Social Affairs said the current global economic slowdown "cuts across both developed and developing countries, with many facing risks of recession in 2023."
The International Monetary Fund, which provides loans to needy countries, projected in October that global growth would slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. IMF Managing Director Kristalina Georgieva said at last week's World Economic Forum in Davos that 2023 will be a difficult year, but stuck by the projection and said "we don't expect a global recession.
According to the U.N. report, this year "growth momentum has weakened in the United States, the European Union and other developed economies, adversely affecting the rest of the world economy." "But the reopening of the economy is expected to be bumpy," the U.N. said. "Growth will likely remain well below the pre-pandemic rate of 6-6.5 per cent."
But growth in India, which is expected to overtake China this year as the world's most populous nation, is expected to remain strong at 5.8 per cent, slightly lower than the estimated 6.4 per cent in 2022, "as higher interest rates and a global slowdown weigh on investments and exports," the U.N. report said.
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