UN forecasts a significant decline in global economic growth rates

The UN forecasts world GDP growth at 2.4% this year, half a percentage point lower than last year. The reason is the deterioration of global trade estimates and financial instability.

This was reported to journalists by Shantanu Mukherjee, Director of the Economic Analysis and Policy Division of the UN Department of Economic and Social Affairs.

According to the updated report “World Economic Situation and Prospects”, the escalation of trade disputes, in particular through new tariffs, is causing price increases and increasing inflation risks, especially for export-dependent economies.

At the same time, the growth of public debt and the volatility of financial markets complicate macroeconomic management, reducing the ability of governments to respond to economic problems.

In these conditions, the growth forecast for the United States has been reduced from 2.7% to 1.8%, and for China – from 4.6% to 4%.

A significant slowdown in economic growth is recorded in Russia. This year its GDP will grow by only 1.5%. The main reasons are the shortage of labor, tight monetary policy and sanctions.

It is noted that the prospects for the economy of the so-called CIS countries depend on a number of key factors, including the Russian war against Ukraine, sanctions against the Russian Federation, energy prices, and the economic situation in China.

Ukraine, according to the UN, continues to depend on the “security situation”, the functioning of the Black Sea corridor and international financial assistance. The cost of post-war recovery of the Ukrainian economy is currently estimated by the UN at $524 billion, which coincides with the estimates of the World Bank.