Current:Home > Contact-usUN somber economic forecast cites conflicts, sluggish trade, high interest and climate disasters-LoTradeCoin
UN somber economic forecast cites conflicts, sluggish trade, high interest and climate disasters
View Date:2024-12-23 23:45:32
UNITED NATIONS (AP) — The United Nations issued a somber global economic forecast for 2024 on Thursday, pointing to challenges from escalating conflicts, sluggish global trade, persistently high interest rates and increasing climate disasters.
In its flagship economic report, the U.N. projected that global economic growth would slow to 2.4% this year from an estimated 2.7% in 2023, which exceeds expectations. But both are still below the 3.0% growth rate before the COVID-19 pandemic began in 2020, it said.
The U.N. forecast is lower than those of the International Monetary Fund in October and the Organization for Economic Cooperation and Development in late November.
The IMF said it expects global growth to slow from an expected 3% in 2023 to 2.9% in 2024. The Paris-based OECD, comprising 38 mainly developed countries, estimated that international growth would also slow from an expected 2.9% in 2023 to 2.7% in 2024.
The U.N.’s report -- World Economic Situation and Prospects 2024 -- warned that the prospects of prolonged tighter credit conditions and higher borrowing costs present “strong headwinds” for a world economy saddled with debt, especially in poorer developing countries, and needing investment to resuscitate growth.
Shantanu Mukherjee, director of the U.N.’s Economic Analysis and Policy Division, said fears of a recession in 2023 were averted mainly due to the United States, the world’s largest economy, curbing high inflation without putting the brakes on the economy.
But he told a news conference launching the report: “We’re still not out of the danger zone.”
Mukherjee said that’s because the unsettled situation in the world could fuel inflation. For example, another supply chain shock or problem in fuel availability or distribution could prompt another interest rate hike to bring the situation under control, he said.
“We’re not expecting a recession, per se, but because there is volatility in the environment around us, this is the major source of risk,” he said.
Very high interest rates for a long time and the threat of possible shocks to prices contribute to “quite a difficult balancing act,” Mukherjee said. “So that’s really why we said that we are not yet out of the woods.”
veryGood! (5)
Related
- Advocates Expect Maryland to Drive Climate Action When Trump Returns to Washington
- Massive World War II-era bomb discovered by construction workers near Florida airport
- Nashville baker makes beautiful cookies of Taylor Swift in her NFL era ahead of Super Bowl
- Biden won’t call for redactions in special counsel report on classified documents handling.
- Missouri prosecutor says he won’t charge Nelly after an August drug arrest
- Research at the heart of a federal case against the abortion pill has been retracted
- Astronomers find evidence of ocean world beneath surface of Saturn's tiny 'Death Star' moon
- Kobe Bryant statue to be unveiled before Los Angeles Lakers' game vs. Denver Nuggets
- Colts' Kenny Moore II ridicules team's effort in loss to Bills
- Have a story about your sibling? Share it with us!
Ranking
- Only 8 monkeys remain free after more than a week outside a South Carolina compound
- 200 victims allege child sex abuse in Maryland youth detention facilities
- Wisconsin elections official claims he’s done more for Black community than any white Republican
- Jason Isbell files for divorce from Amanda Shires after nearly 11 years of marriage: Reports
- Wisconsin’s high court to hear oral arguments on whether an 1849 abortion ban remains valid
- The race for George Santos’ congressional seat could offer clues to how suburbs will vote this year
- Special counsel finds Biden willfully disclosed classified documents, but no criminal charges warranted
- Senators ask CEOs why their drugs cost so much more in the U.S.
Recommendation
-
What do nails have to say about your health? Experts answer your FAQs.
-
SEC, Big Ten group looks to fix college sports. More likely? Screwing up even more.
-
Why Saudi Arabia is building a new city in the desert
-
5 Marines aboard helicopter that crashed outside San Diego confirmed dead
-
Republican Scott Baugh concedes to Democrat Dave Min in critical California House race
-
US has enough funds for now to continue training Ukrainian pilots on F-16, National Guard chief says
-
Senate advances foreign aid package after falling short on border deal
-
Man ticketed for shouting expletive at Buffalo officer can sue police, appeals court rules