Global economic growth is expected to drop to 2.4% this year, down from 3% last year, and shows little sign of rebounding next year, says a new forecast from the United Nations Conference on Trade and Development.
The global economic landscape is "characterized by growing inequalities and divergence of growth paths between key regions," UNCTAD says in its 103-page "Trade and Development Report 2023" on Wednesday.
"The world economy is flying at 'stall speed,' with projections of a modest growth of 2.4% in 2023, meeting the definition of a global recession," it says.
"Cautiously, the outlook for 2024 suggests a modest growth improvement (2.5%), contingent upon the euro area’s recovery and the avoidance of adverse shocks by other leading economies."
UNCTAD's growth outlook says many economies will grapple with divergent recovery paths, deepening inequalities and mounting pressures of indebtedness.
The lack of recovery to pre-COVID-19 pandemic economic levels will leave unmet "urgent needs" in areas of food security, social protection, and climate adaptation.
"Compounding these issues is the absence of adequate multilateral responses and coordination mechanisms," UNCTAD says in calling for policymakers to prioritize efforts to tackle inequalities and deliver sustainable growth and development.
