Bangkok--14 Jan--UN
All indicators point to a weaker then originally predicted economic growth in the coming years with world economy expanding by 3.1 per cent in 2011 and 3.5 per cent in 2012 -far from sufficient to enable recovery of the jobs lost because of the crisis says a new United nations report.
The “World Economic Situation and Prospects” (WESP) projects that while developing countries continue to drive the global recovery, their output growth is expected to drop to 6.0 per cent during 2011-2012 - down from 7.0 per cent in 2010 - because of the slowdown in the advanced countries and phasing out of stimulus measures. However, Developing Asia, led by China and India, continues to show the strongest growth performance, but some moderation (to around 7 per cent) is expected in 2011 and 2012.
Dr. Nagesh Kumar, Chief Economist for the UN Economic and Social Commission for Asia and the Pacific (ESCAP), will introduce the report and present the key findings at a press conference at 1:30 p.m. on Tuesday, 18 January at the Foreign Correspondents’ Club of Thailand (FCCT) in Bangkok.
The report focuses on key factors such as the lack of employment growth as the weakest link of the economic recovery, as well as volatility in currency markets generating additional macroeconomic uncertainty which could further jeopardize the recovery.
The report also addresses the five major policy challenges that must be addressed to prevent a double dip recession and move towards a more balanced and sustainable global recovery. These include additional fiscal stimulus; redesigning stimulus efforts to directly stipulate job growth; finding greater synergy between fiscal and monetary stimulus; making sure that sufficient financial assistance is readily available to developing countries; and finding ways to come to credible and effective policy coordination among major economies.
For more information please contact:
Thawadi Pachariyangkun
UN ESCAP Information Services
Tel: + 66-2-288 1861, Cell: + 66 81 835 8647
E-mail:
[email protected] and
[email protected]