UN sees increased global economic growth
Fin24

UN sees increased global economic growth

2014-12-11 10:41

New York - The global economy will grow by more than 3% in 2015 and 2016, the United Nations predicted on Wednesday, but that growth will be uneven in some regions.

The UN's annual economic report says growth edged up in 2014 at an estimated 2.6%.

The UN is forecasting 3.1% economic growth in 2015 and 3.3% growth in 2016.

The World Economic Situation and Prospects 2015 report says business investment will be a major driver in the United States, growth in the world's least developed economies will exceed the global average, and strong household consumption will keep East Asia the world's fastest growing region.

But troubles in the eurozone, including high unemployment, continue to hold back Western Europe; China's growth becomes more moderate; and Russia's economic activity is flat after it "came to a standstill" amid tensions over Ukraine.

Long-term unemployment remains a problem in many regions recovering from the Great Recession, the report says.

While "unexpected shocks" like the rise of the Islamic State group in the Middle East have hurt global recovery, the report says the effects so far have been limited because the global oil markets have remained stable.

"Any actual or feared conflict-related decline in oil supplies (has been) offset by oil production increases, notably in the United States," the report says.

Among developed economies, the report says the United States will see 2.8% growth in 2015 and 3.1% in 2016. The European Union will edge up 1.7% in 2015 and 2% in 2016. Japan, hurt by lower private consumption caused by a higher consumption tax, will see just 1.2% growth in 2015 and 1.1% in 2016.

Among developing countries, the UN report says China will see 7.0% growth in 2015 and 6.8% in 2016. India will continue to drive the South Asian region with 5.9% growth in 2015 and 6.3% in 2016.

Large public investment projects are expected to help Latin American countries, with Brazil expected to grow 1.5% in 2015 and 2.4% in 2016. Mexico will see 3.4% growth in 2015 and 3.8% in 2016.

"Near-zero growth" is forecast for Russia in 2015, at just 0.2%, with 1.2% expected in 2016.

Africa has some of the strongest growth numbers, helped by investment and private consumption. Nigeria should see 6.1% in 2015 and 5.9% in 2016, and the continent overall is expected to see 4.6% in 2015 and 4.9% in 2016.

But the Ebola outbreak has crushed economies in West Africa's Liberia, Sierra Leone and Guinea.

Comments
  • Louie Walshe - 2014-12-11 11:08

    "While "unexpected shocks" like the rise of the Islamic State group in the Middle East have hurt global recovery, the report says the effects so far have been limited because the global oil markets have remained stable." Well if a 40% drop in oil prices is considered 'stable', then you will believe the rest of the article too.

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