Monday March 04, 2024

UNCTAD forecasts global growth to slow to 2.4% in 2023

Published : 05 Oct 2023, 01:18

  DF News Desk
File Photo: Xinhua.

World economic growth is projected to slow from 3 percent in 2022 to 2.4 percent in 2023 with few signs of a rebound next year, the United Nations Conference on Trade and Development (UNCTAD) said in its "Trade and Development Report 2023" published on Wednesday., reported Xinhua

The UNCTAD warned of a stalling global economy, with growth slowing in most regions from last year and only a few countries bucking the trend.

According to the report, the global economy is at a crossroads, where divergent growth paths, widening inequalities, growing market concentration and mounting debt burdens cast shadows on its future.

"Globally, the post-pandemic recovery is divergent," the report said. While some economies, such as Brazil, China, India, Japan, Mexico, Russia and the United States, have demonstrated resilience in 2023, others face more formidable challenges.

In the context of slower growth and absent policy coordination, this divergence raises concerns about the way forward for the global economy, the report said.

Institutional reforms of the global financial architecture, more pragmatic policies to tackle inflation, inequality and sovereign debt as well as stronger oversight of key markets are needed, the report said.

The report called for more transparent, regulated markets for a fairer global trade system.

"To safeguard the world economy from future systemic crises, we must avoid the policy mistakes of the past and embrace a positive reform agenda," UNCTAD Secretary-General Rebeca Grynspan said.

"We need a balanced policy mix of fiscal, monetary and supply-side measures to achieve financial sustainability, boost productive investment and create better jobs. Regulation needs to address the deepening asymmetries of the international trading and financial system," she added.