Global growth forecast to slow to 1.9% in 2023, warn UN economists

New York, January 26 (BNA): Senior United Nations economists warned Wednesday that intersecting crises are likely to add more damage to the global economy, as growth is expected to slow from three percent in 2022 to 1.9 percent this year. general.

This would be one of the lowest growth rates in recent decades, barring the 2007-2008 financial crisis and the height of the COVID-19 pandemic.

“In most countries, we expect private consumption and investment to weaken due to inflation and higher interest rates,” said Ingo Petrel, chief economist at the United Nations Department of Economic and Social Affairs (UNDESA). “Many countries will experience a mild recession before growth is expected to pick up in the second half of this year and into 2024.”

The findings come against the background of the pandemic, the war in Ukraine and the resulting food and energy crises, rising inflation, debt tightening, as well as the climate emergency.

In the near term, the economic outlook looks bleak and uncertain with global growth forecasts rising moderately to 2.7 percent in 2024.

However, this depends greatly on the pace and sequence of further monetary tightening – higher interest rates – and the outcome of the war in Russia and Ukraine, and the potential for further disruptions to the supply chain.

The report warns that the findings also threaten the achievement of the 17 Sustainable Development Goals.

“This is not the time for short-term thinking or rapid fiscal austerity that exacerbates inequality, increases suffering, and can put the Sustainable Development Goals out of reach. These unprecedented times call for unprecedented action,” said António Guterres, UN Secretary-General. .

“This measure includes a transformative SDG stimulus package, created through the collective and concerted efforts of all stakeholders,” he added.

FKN