Global economy to recover - WESP
Global economic growth should increase over the next two years with
continuing signs of improvement, according to the United Nations World
Economic Situation and Prospects 2014 (WESP) report. But, several
uncertainties and downside risks continue to loom.
The global economy is expected to grow at 3.0 percent in 2014 and 3.3
percent in 2015, compared to an estimated growth of 2.1 percent for
2013, according to the United Nations World Economic Situation and
Prospects 2014 (WESP) report, launched recently.
The world economy experienced again subdued growth in 2013, but some
improvements in the last quarter have led to the UN's more positive
forecast. The euro area has finally ended a protracted recession. Growth
in the United States strengthened somewhat.
A few large emerging economies, including China and India,
backstopped the deceleration they experienced in the past two years and
veered upwards moderately. Developing countries will benefit from
resilient domestic demand and an improvement in global conditions. These
factors point to increasing global growth. However, the WESP stressed
that the employment situation will continue to be challenging and warned
that international capital flows to emerging economies will become more
volatile, in particular in the case of a bumpy exit from the
quantitative easing programs by the US Federal Reserve.
Other main uncertainties and risks include the remaining fragility in
the banking system and the real economy in the euro area. Beyond the
economic domain, geopolitical tensions in Western Asia and elsewhere
remain serious risks.