The UN said that the through 2018 and 2019, there would be stability in the world economy, following an inspiring rate of 3 percent in growth in 2017.
The predictions were revealed in a UN world economic prospects report.
Since 2011, the best performance of the global economy was noted in 2017. The UN World Economic Situation and Prospects 2018 report claimed that in 2018 and 2019, a steady rate of 3 percent in growth would be achieved by global economies.
The report also noted that compared to the rates of growth in 2016, most about two-thirds of countries in the world reported better growth in 2017. This showed that the growth was uniform.
While East and South Asia were among the most dynamic economic growth regions, the growth in several developed economies also drove the growth in global growth in 2017. According to the report, almost half of the global growth in 2017 was accounted for by East and South Asia where about one-third of that was driven by China.
On the other hand, a rebound in global trade and enhancements in investment conditions saw countries of Argentina, Brazil, Nigeria and Russia emerging out of recession.
The report further said that it is a challenge however to attain medium term prospects by sustaining this acceleration and channeling it into productive investment.
The report further added that issues like tackling climate change, addressing current inequalities and eradicating institutional hurdles to development are the areas where countries can now focus on – an opportunity that has been provided by the enhanced global economic situation.
“The World Economic Situation and Prospects 2018 demonstrates that current macroeconomic conditions offer policy-makers greater scope to address some of the deep-rooted issues that continue to hamper progress toward the (2030) Sustainable Development Goals,” said UN Secretary-General Antonio Guterre in the Foreword of the report.
“While the upturn in global growth is a welcome sign of a healthier economy, it is important to remember that this may come at an environmental cost. This calls for stronger efforts to delink economic growth and environmental degradation,” said Launching the report, UN Undersecretary-General for Economic and Social Affairs Liu Zhenmin while launching the report.
The report also noted geopolitical risks like rising geopolitical tensions, and economical risks like a sudden deterioration in global financial conditions and changes in trade policy were elements that could put the global economy at risk despite the enhanced short-term outlook.
There are also long-term challenges to the global economy. Addressing institutional deficiencies, facilitating long-term investment, reduction in inequality and enhancing economic versification are the four areas of scope that are presented by the good macroeconomic situation which, it transformed into policies, can help tackle the problems.
(Adapted from News.Xinhuanet.com)v