UN forecast shows better prospects for global economy

UN forecast shows better prospects for global economy

The United Nations reported that the prospect of the global economy has improved since its initial forecast in January.

In a statement seen by The City Review on Friday, Shantanu Mukherjee, Director of the UN’s Economic Analysis and Policy Division, said that the outlook had improved for the US and in several emerging economies, including Brazil, India, and Russia.

“Our prognosis is one of guarded optimism, but with important caveats. Globally, energy and food prices are inching upward in recent months, but I think a bit more insidious even is the persistence of inflation above the 2 per cent central bank target in many developed countries,” he said.

Mukherjee lamented climatic hazards, particularly in the world’s poorest countries and small island states, higher longer-term interest rates, difficulties repaying debt, and ongoing geopolitical instability.

He said the lower forecast for Africa “is particularly worrying because Africa is home to about 430 million (people) living in extreme poverty and close to 40 per cent share of the global undernourished population.”

He added that “two-thirds of the high inflation countries listed in our update are also in Africa”.

According to the report, the world economy is now expected to grow by 2.7 per cent this year, up from the 2.4 per cent predicted in the research released in January, and by 2.8 per cent in 2025.  

However, the UN report anticipates 3.3 per cent economic growth in Africa, which is less than the 3.5 per cent predicted at the start of 2024.