United Nations Downgrades Global Economic Forecast
Global economic activity is expected to contract 2.6 percent this year after expanding 2.1 percent in 2008, the United Nations now forecasts in its mid-year World Economic Situation and Prospects update. The new forecast is much worse than the U.N.’s January prediction for a decline of 0.5 percent in global GDP.
The U.N. report says the global economy could rebound in 2010 but that there are significant risks to that outlook:
If financial markets do not unclog soon and if the fiscal stimuli do not gain sufficient traction, the recession would prolong in most countries with the global economy stagnating at lower welfare levels well into 2010.
Under a more optimistic scenario, in which the financial and credit markets are completely healed in 2009, the U.N. said world GDP could rise 2.3 percent in 2010.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
