{"id":36128,"date":"2023-01-25T11:29:48","date_gmt":"2023-01-25T18:29:48","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/u-n-forecasts-fall-in-global-economic-growth-to-1-9-in-2023\/"},"modified":"2023-01-25T18:29:48","modified_gmt":"2023-01-25T18:29:48","slug":"u-n-forecasts-fall-in-global-economic-growth-to-1-9-in-2023","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/u-n-forecasts-fall-in-global-economic-growth-to-1-9-in-2023\/","title":{"rendered":"U.N. forecasts fall in global economic growth to 1.9% in 2023"},"content":{"rendered":"

\"Currency
Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Jan. 20. (Ahn Young-joon\/The Associated Press)<\/span>Ahn Young-joon<\/span><\/figcaption><\/figure>\n<\/p>\n

UNITED NATIONS \u2013 The United Nations forecast Wednesday that global economic growth will fall significantly to 1.9% this year as a result of the food and energy crisis sparked by the war in Ukraine, the ongoing impact of the COVID-19 pandemic, persistently high inflation and the climate emergency.<\/p>\n

Painting a gloomy and uncertain economic outlook, the U.N. Department of Economic and Social Affairs said the current global economic slowdown \u201ccuts across both developed and developing countries, with many facing risks of recession in 2023.\u201d<\/p>\n

\u201cA broad-based and severe slowdown of the global economy looms large amid high inflation, aggressive monetary tightening, and heightened uncertainties,\u201d U.N. Secretary-General Antonio Guterres said in a foreword to the 178-page report.<\/p>\n

The report said this year\u2019s 1.9% economic growth forecast \u2013 down from an estimated 3% in 2022 \u2013 is one of the lowest growth rates in recent decades. But it projects a moderate pickup to 2.7% in 2024 if inflation gradually abates and economic headwinds start to subside.<\/p>\n

In its annual report earlier this month, the World Bank which lends money to poorer countries for development projects, cut its growth forecast nearly in half, from it previous projection of 3% to just 1.7%.<\/p>\n

The International Monetary Fund, which provides loans to needy countries, projected in October that global growth would slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. IMF Managing Director Kristalina Georgieva said at last week\u2019s World Economic Forum in Davos that 2023 will be a difficult year, but stuck by the projection and said \u201cwe don\u2019t expect a global recession.\u201d<\/p>\n

According to the U.N. report, this year \u201cgrowth momentum has weakened in the United States, the European Union and other developed economies, adversely affecting the rest of the world economy.\u201d<\/p>\n

In the United States, GDP is projected to expand by only 0.4% in 2023 after estimated growth of 1.8% in 2022, the U.N. said. And many European countries are projected to experience \u201ca mild recession\u201d with the war in Ukraine heading into its second year on Feb. 14, high energy costs, and inflation and tighter financial conditions depressing household consumption and investment.<\/p>\n

The economies in the 27-nation European Union are forecast to grow by just 0.2% in 2023, down from an estimated 3.3% in 2022, the U.N. said. And in the United Kingdom, which left the EU three years ago, GDP is projected to contract by 0.8% in 2023, continuing a recession that began in the second half of 2022, it said.<\/p>\n

With China\u2019s government abandoning its zero-COVID policy late last year and easing monetary and fiscal policies, the U.N. forecast that its economy, which expanded by only 3% in 2022, will accelerate to 4.8% this year.<\/p>\n

\u201cBut the reopening of the economy is expected to be bumpy,\u201d the U.N. said. \u201cGrowth will likely remain well below the pre-pandemic rate of 6-6.5%.\u201d<\/p>\n

The U.N. report said Japan\u2019s economy is expected to be among the better-performing among developed countries this year, with GDP forecast to increase by 1.5%, slightly lower than last year\u2019s estimated growth of 1.6%.<\/p>\n

Across East Asia, the U.N. said economic recovery remains fragile though GDP growth in 2023 is forecast to reach 4.4%, up from 3.2% last year, and stronger than in other regions.<\/p>\n

In South Asia, the U.N. forecast average GDP growth will slow from 5.6% last year to 4.8% this year as a result of high food and energy prices, \u201cmonetary tightening and fiscal vulnerabilities.\u201d<\/p>\n

But growth in India, which is expected to overtake China this year as the world\u2019s most populous nation, is expected to remain strong at 5.8%, slightly lower than the estimated 6.4% in 2022, \u201cas higher interest rates and a global slowdown weigh on investments and exports,\u201d the U.N. report said.<\/p>\n

In Western Asia, oil-producing countries are benefiting from high prices and rising output as well as a revival in tourism, the U.N. said. But economies that aren\u2019t oil producers remain weak \u201cgiven tightening access to international finance and severe fiscal constraints,\u201d and average growth in the region is projected to slow from an estimated 6.4% in 2022 to 3.5% this year.<\/p>\n

The U.N. said Africa has been hit \u201cby multiple shocks, including weaker demand from key trading partners (especially China and Europe), a sharp increase in energy and food prices, rapidly rising borrowing costs and adverse weather events.\u201d<\/p>\n

One result, it said, is mounting debt-servicing burdens which have forced a growing number of African governments to seek bilateral and multilateral support.<\/p>\n

The U.N. projected economic growth in Africa to slow from an estimated 4.1% in 2022 to 3.8% this year.<\/p>\n

In Latin America and the Caribbean, the U.N. said the outlook \u201cremains challenging,\u201d citing labor market prospects, stubbornly high inflation and other issues. It forecast that regional growth will slow to just 1.4% in 2023 from an estimated expansion of 3.8% in 2022.<\/p>\n

\u201cThe region\u2019s largest economies \u2013 Argentina, Brazil and Mexico \u2013 are expected to grow at very low rates due to tightening financial conditions, weakening exports, and domestic vulnerabilities,\u201d the U.N. said.<\/p>\n

For the world\u2019s least developed countries, the U.N. said growth is projected at 4.4% this year, about the same as last year but significantly below the UN\u2019s target of 7% by 2030.<\/p>\n","protected":false},"excerpt":{"rendered":"

Economies in European Union are forecast to grow by just 0.2% <\/p>\n","protected":false},"author":1,"featured_media":36129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[11],"naviga_topic":[],"class_list":["post-36128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-economy-general"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/36128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=36128"}],"version-history":[{"count":0,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/36128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/36129"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=36128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=36128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=36128"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=36128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}