Launch of the Publication "World Economic Situation and Prospects 2016"
The World Economic Situation and Prospects is a joint product of the United Nations Department of Economic and Social Affairs (UN/DESA), the United Nations Conference on Trade and Development (UNCTAD) and the five United Nations regional commissions, including Economic and Social Commission for Asia and the Pacific (ESCAP).
The report will highlight that global economic growth slowed in 2015 amid low commodity prices, large capital flows and increased financial market volatility. The pivot of global growth is shifting again to developed economies, as major developing economies such as Brazil, China and the Russian Federation are facing an economic slowdown. For the outlook, generally less restrictive fiscal and still accommodative monetary policy stances worldwide would help to improve growth in 2016 and 2017. But such improvement is projected to be modest and growth will remain below potential as several cyclical and structural headwinds persist. Among others, macroeconomic uncertainties, volatility in exchange rates and capital flows, diminished trade flows, and stagnant investment and productivity growth would continue to constrain global economic growth.
The report emphasizes that policymakers in developing economies should ensure that steady poverty reduction and stable job markets are maintained amid an economic slowdown. To address subdued economic activity, policymakers could consider increasing the role of fiscal policies and targeted labour market strategies to boost productivity, employment generation and output growth. More broadly, the report urged that policymakers in developed and developing countries have stronger and more coordinated effort to achieve inclusive and sustainable economic growth, which is a critical factor in securing the 2030 Sustainable Development Goals.