UN predicts weaker global economic growth for 2022 and 2023

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UNITED NATIONS (AP) — The United Nations forecast weaker global economic growth for 2022 and 2023 on Thursday, saying the world faces new waves of COVID-19 infections, persistent labor market challenges , persistent supply chain issues and mounting inflationary pressures.

The UN said that after growing by 5.5% in 2021 – the highest global economic growth rate in more than four decades – the world economy is expected to grow by only 4% in 2022 and 3, 5% in 2023.

Last year’s robust recovery was largely driven by consumer spending, with some increase in investment and trade in goods exceeding pre-COVID-19 pandemic levels, according to the UN’s health report. World Economic Situation and Prospects 2022 released on Thursday.

But growth momentum “slowed considerably at the end of 2021, including in major economies, such as China, the European Union and the United States”, as the effects of monetary and financial stimuli from the pandemic began to fade and major supply chain disruptions emerged. , says the report.

UN Under-Secretary-General for Economic and Social Affairs Liu Zhenmin highlighted the economic and human toll of the highly transmissible omicron variant of COVID-19.

“Without a coordinated and sustained global approach to containing COVID-19 that includes universal access to vaccines, the pandemic will continue to pose the greatest risk to an inclusive and sustainable recovery of the global economy,” Liu said.

The report says labor shortages in developed economies are adding to supply chain challenges and inflationary pressures.

He said growth in most developing countries and economies in transition has generally been weaker.

While rising commodity prices have helped export-dependent countries, rising food and energy prices have triggered rapid inflation, particularly in the nine members of the Commonwealth of Independent States, formed after the breakup of the Soviet Union in 1991, and in Latin America. and the Caribbean, according to the UN.

“Recovery has been particularly slow in tourism-dependent economies, especially in small island developing states,” he said.

The United Nations forecasts are similar to those of the World Bank. published on Tuesday.

The 189-country global financial institution that provides loans and grants to low- and middle-income countries lowered its forecast for global economic growth to 4.1% this year, down from 4.3% growth that she was planning last June. He blamed continued COVID-19 outbreaks, a reduction in government economic support and persistent bottlenecks in global supply chains.

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