UNESCAP News Services
Date: 13 January 2011
Media Advisory No: N/01/2011
Low Job Growth and Unstable Exchange Rates Threaten Global Recovery, says UN Report
Press conference to launch new report at 1:30 p.m. on 18 January at FCCT
BANGKOK (UN ESCAP Information Services)---All indicators point to a weaker then originally predicted economic growth in the coming years with world economy expanding by 3.1 per cent in 2011 and 3.5 per cent in 2012 -far from sufficient to enable recovery of the jobs lost because of the crisis says a new United nations report.
The “World Economic Situation and Prospects” (WESP) projects that while developing countries continue to drive the global recovery, their output growth is expected to drop to 6.0 per cent during 2011-2012 - down from 7.0 per cent in 2010 - because of the slowdown in the advanced countries and phasing out of stimulus measures. However, Developing Asia, led by China and India, continues to show the strongest growth performance, but some moderation (to around 7 per cent) is expected in 2011 and 2012.
Dr. Nagesh Kumar, Chief Economist for the UN Economic and Social Commission for Asia and the Pacific (ESCAP), will introduce the report and present the key findings at a press conference at 1:30 p.m. on Tuesday, 18 January at the Foreign Correspondents’ Club of Thailand (FCCT) in Bangkok.
The report focuses on key factors such as the lack of employment growth as the weakest link of the economic recovery, as well as volatility in currency markets generating additional macroeconomic uncertainty which could further jeopardize the recovery.
The report also addresses the five major policy challenges that must be addressed to prevent a double dip recession and move towards a more balanced and sustainable global recovery. These include additional fiscal stimulus; redesigning stimulus efforts to directly stipulate job growth; finding greater synergy between fiscal and monetary stimulus; making sure that sufficient financial assistance is readily available to developing countries; and finding ways to come to credible and effective policy coordination among major economies.
For more information please contact:
UN ESCAP Information Services
Tel: + 66-2-288 1861, Cell: + 66 81 835 8647
E-mail: firstname.lastname@example.org and email@example.com
WORLD ECONOMIC SITUATION AND PROSPECTS is produced at the beginning of each year by the UN Department of Economic and Social Affairs (UN DESA), the United Nations Conference for Trade and Development (UNCTAD) and the five United Nations regional commissions (Economic Commission for Africa (ECA), Economic Commission for Europe (ECE), Economic Commission for Latin America and the Caribbean (ECLAC),Economic and Social Commission for Asia and the Pacific (ESCAP), and the Economic and Social Commission for Western Asia (ESCWA).
* *** *
Headquartered in Bangkok, United Nations ESCAP is the largest of the UN's five Regional Commissions in terms of its membership, population served and area covered. The only inter-governmental forum covering the entire Asia-Pacific region, ESCAP works to promote sustainable and inclusive economic and social progress. More information on ESCAP is available at www.unescap.org