UN delivers gloomy outlook for 2012 economic growth

Geneva, Jan 17: The world economy is teetering on the brink of another major downturn, and 2012 and 2013 will probably see anaemic growth at best, two United Nations reports said Tuesday.

"Output growth has already slowed considerably during 2011, said a report released by United Nations Conference on Trade and Development (UNCTAD).

"The problems stalking the global economy are multiple and interconnected," it warned.

Downside risks stemmed in particular from high unemployment, said Alfredo Calcagno, a senior UNCTAD economist.

"The most pressing challenges lie in addressing the continued jobs crisis and declining prospects for economic growth, especially in the developed countries," the report added.

Perceived failures by policymakers and the imposition of fiscal austerity programmes across Europe owing to the sovereign debt crisis have raised the chances of another global recession another UN report said.

The United Nations' World Economic Situation and Prospects 2012 report estimated that growth in the European Union would be only 0.7 per cent in 2012, substantially lower than the 1.6 per cent rate registered in 2011.

The second report was released jointly by UNCTAD, the United Nations Department of Economic and Social Affairs (UN/DESA), and five regional UN commissions.

AFP