UN predicts modest global economic growth for next two yearsStaff writer ▼ |
Report The World Economic Situation and Prospects 2016
The world economy is projected to grow by 2.9 percent in 2016 and 3.2 percent in 2017, said a UN report here Thursday, attributing the modest economic growth to a number of cyclical and structural headwinds.
Amid lower commodity prices, large capital outflows and increased financial market volatility, growth in developing and transition economies have slowed to its weakest pace since the global financial crisis, according to the report.
Stagnant investment growth and growing disconnect between finance and real sector activities also impede the world economy from growing, it added.
According to the report, growth in developed economies will gain some momentum in 2016, while economic growth in developing and transition economies is expected to bottom out and gradually recover.
Developing countries are expected to grow by 4.3 percent and 4.8 percent in 2016 and 2017, respectively. ■
What to read next