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UN sees weak economic growth in 2016

UN

UNITED NATIONS: The United Nations on Thursday said global economic growth for 2016 would reach 2.4 percent, revising its forecast downward by 0.5 percentage points due to weaknesses in developed economies.

In its world economic situation and prospects report, the United Nations said many countries in Africa, the former Soviet Union, Latin America and the Caribbean were being hit by low commodity prices.

“Economic activity in the world economy remains lackluster, with little prospect for a turnaround in 2016,” said the report by the UN’s department of economic and social affairs.

“Persistent weaknesses in aggregate demand in developed economies remains a drag on global growth,” it said.

Economic downturns in Russia and Brazil will have significant regional spillovers.

Russia’s economy is expected to contract by 1.9 percent in 2016.

Brazil is on track for a 3.4 percent contraction of its economy.

Global growth is expected to rise marginally to just 2.8 percent in 2017.

“The protracted period of slow productivity growth and feeble investment weigh on the longer-term potential of the global economy,” said the report.

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