UN: Global Economy Likely to Grow 2.5 PCT in 2020

Added On January 19, 2020

The United Nations has predicted that the global economy will likely grow 2.5 percent this year, but a flareup of trade tensions, financial turmoil, or an escalation of geopolitical tensions could derail a recovery.

The United Nations World Economic Situation and Prospects 2020 was launched on Thursday at the UN headquarters in New York.
The report says global economy could grow as much as 2.5 percent this year but would slow to just 1.8 percent in a downside scenario.
SOUNDBITE 1 (English): ELLIOT HARRIS, UN Chief Economist
"Prolonged weakness in global economic activity may cause significant setbacks to the prospects for sustainable development, including the goals of eradicating poverty and creating decent jobs for all. Already, we see that the number of people living in extreme poverty has been rising again parts of Africa, Latin America, and Western Asia. Amid growing discontent over a lack of inclusive growth, calls for change are widespread across the globe."
According to the report, pervasive inequalities and the deepening climate crisis are fueling growing discontent in many parts of the world.
SOUNDBITE 2 (English): ELLIOT HARRIS, UN Chief Economist
"This year's WESP conveys a sobering message on the state of the global economy. In an environment of prolonged trade disputes and high policy uncertainty, the global economy slowed to its lowest growth rate in a decade. The world continues to face a host of risks and uncertainties, including trade tensions, escalating geopolitical conflicts, elevated levels of debt, as well as increasing climate risks. The risks of a further deterioration in the economic situation are high."
However, the report says the world could see a slight uptick in economic activity in 2020 if risks are kept at bay.
The World Economic Situation and Prospects is an annual UN flagship publication on the state of the world economy. It is a joint product of the UN Department of Economic and Social Affairs, the UN Conference on Trade and Development and the five UN regional commissions.