UN releases World Economic Situation and Prospects 2013 Report
As per the forecast report World Economic Situation and Prospects 2013 released by the United Nations, it is hopeful that the world economy can gain slow momentum for the rest of the year as a result of improved global financial conditions.
Highlights of the report:
- It is expected that global economic activity will gain momentum in the second half of 2013 and 2014 being backed by the accommodative monetary policies in the developing and developed economies.
- Moderate pick-up activity will be observed but the growth will be seemingly below potential.
- Employment gains particularly in the developed economies will remain weak.
- Though there has been some reduction in the short term risks linked with the economic slowdown in the large developing nations, fiscal adjustments of US and the worsened situations of the Euro Area but the risks have not diminished.
- There are still both the probabilities to the global economy, one of returning back on a good track and the second one is of getting derailed.
- Policies should be inclined towards balanced global recovery with a focus on job creation.
- International Policy Coordination should be employed to mitigate the negative policy spillovers and to encourage cooperation and curb protectionism, as this will aid in reforming the international financial system and ensuring adequate resource flows in developing economies and in the third world countries.