Sunday, October 29, 2023

“World Economic Growth Predicted to Reach 2.3% by UN in 2023”


According to a report released by the UN Department of Economic and Social Affairs, global economic growth is expected to reach 2.3 percent in 2023, which is an increase of 0.4 percentage points from the January forecast. However, the prediction for 2024 has dropped by 0.2 percentage points to 2.5 percent. The report also states that the growth rate is still below the average growth rate in the two decades before the pandemic of 3.1 percent. The UN forecasts are lower than the International Monetary Fund’s predictions, which stated that global growth would fall to 2.9 percent in 2023 from 3.4 percent in 2022 and would slightly increase to 3.1 percent in 2024. While the outlook for the US, EU, and China has improved, many developing countries’ growth prospects have deteriorated due to tightening credit conditions and rising external financing costs. The UN report also highlights that the least developed countries are expected to grow by 4.1 percent in 2023 and 5.2 percent in 2024, which is far below the 7 percent growth target set in the 2030 Agenda for Sustainable Development.

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