The United Nations predicted on Wednesday that this year’s growth will drop sharply to 1.9%. The predicted growth rate is lower than the expected 3% growth rate for 2022, which was one of the lowest in recent memory.
United Nation’s says growth will fall significantly to 1.9%
The impact of the COVID-19 epidemic, chronically rising inflation, the food and energy crises brought on by the war in Ukraine, and the climate emergency are contributing factors.
The current worldwide economic slump, according to the U.N. Department of Economic and Social Affairs “cuts across both developed and developing countries, with many facing risks of recession in 2023”.
UN Secretary General Antonio Guterres said in a foreword to 178 page report
“A broad-based and severe slowdown of the global economy looms large amid high inflation, aggressive monetary tightening, and heightened uncertainties,”
If inflation steadily decreases and economic headwinds start to ease, the UN also predicts a modest recovery up to 2.7% in 2024.
Early this year, the World Bank reduced its earlier 3% growth forecast to just 1.7%, practically halving it.
In its October forecast, the International Monetary Fund—which lends money to developing nations—predicted that global growth would decline from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023.
United Nation study claims, “growth momentum has diminished in the United States, the European Union and other developed economies, adversely affecting the rest of the world economy,”.
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In United States, GDP is projected to expand by only 0.4% in 2023
According to the U.N., the US GDP is expected to grow by just 0.4% in 2023, down from an anticipated 1.8% growth in 2022.
European countries expected to experience mild recession
With the war in Ukraine entering its second year on February 14 with rising energy prices, inflation, and tighter financial conditions reducing household spending and investment, many European countries are predicted to endure “a moderate recession.”
European Union countries expected to grow by just 0.2%
According to the U.N., economic growth in the 27-nation European Union is expected to be just 0.2% in 2023, down from an anticipated 3.3% in 2022.
GDP of United Kingdom is projected to expand by 0.8%
Additionally, it stated that the GDP of the United Kingdom, which left the EU three years ago, is expected to decrease by 0.8% in 2023, extending the recession that started in the second part of 2022.
China’s economy will expand to 4.8% in 2023
China’s GDP, which grew by only 3% in 2022, is expected to grow by 4.8% this year, according to the U.N.
Japan’s economy is projected to increase by 1.5%
According to the U.N. study, Japan’s economy is anticipated to be among the better-performing developed nations this year, with GDP growth projected to be 1.5%, just 0.1% less than the estimated growth of 1.6% for the previous year.
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