UNITED NATIONS (AP) – The UN on Thursday forecast lower global economic growth for 2022 and 2023, saying the world faces new waves of coronavirus infections, persistent labor market challenges, supply chain problems and rising inflationary pressures.
The UN said that after expanding 5.5% in 2021 – the highest global growth rate in more than four decades – the world economy is set to grow 4% this year and 3.5% in 2023.
Last year’s strong economic recovery was driven mostly by consumer spending, some increases in investment and trade in goods, exceeding pre-pandemic levels, says the 2022 World Economic Outlook and Situation Report (WESP). English).
But the momentum for growth “slowed considerably in late 2021, including in major world economies such as China, the European Union and the United States” as the impacts of the financial and monetary stimuli created to weather the pandemic began to wane. problems emerged in the supply chain, highlights the report.
The UN Undersecretary for Economic and Global Affairs Liu Zhenmin pointed to the economic and human balance of the omicron variant of the coronavirus.
“Without a coordinated and sustained global approach to containing COVID-19 that includes universal access to vaccines, the pandemic will continue to pose the greatest danger to an inclusive and sustainable recovery of the global economy,” Liu said.
The report says that labor shortages in developed economies are adding to supply chain problems and inflationary pressures.
It adds that growth in most developing countries and economies in transition has generally been weaker.
While rising commodity prices have helped export-dependent countries, rising food and fuel prices have triggered rapid inflation, particularly in the nine-member Commonwealth of Independent States formed after dissolution. of the Soviet Union, as well as in Latin America and the Caribbean, says the UN.
“Recovery has been especially slow in economies dependent on tourism, notably in small developing islands,” he adds.
The UN forecast is similar to that of the World Bank, released on Tuesday.
The 189-nation global financial institution that provides loans and grants to low- and middle-income countries cut its estimate of global economic growth to 4.1% this year, from 4.3% in June. He attributed it to continued COVID-19 outbreaks, reduced economic support from governments, and current bottlenecks in the supply chain.