Picture: AFP/JOE RAEDLE
The global economy is set to expand faster than expected in 2018 and 2019, the United Nations said Thursday, predicting a new a growth rate of 3.2 percent.
“Growth in the world economy is surpassing expectations and global GDP is now expected to expand by more than three per cent this year and in 2019,” the UN report said.
It said that surge reflected “strong growth in developed countries and broadly favorable investment conditions.”
The new figures show the rate of expected growth for this year revised upwards by 0.2 percent from earlier predictions made in late 2017, and up 0.1 percent for 2019.
“World trade growth has also accelerated, reflecting a widespread increase in global demand,” the report said.
Elliott Harris, the UN Assistant Secretary-General for Economic Development, said that multilateralism, which is facing mounting criticism worldwide, “is not an option, it’s a necessity”.
In remarks apparently aimed at US President Donald Trump, the report warned that “a shift away from unambiguous support for the multilateral trading system, marked by further trade barriers and retaliatory measures, threatens the strength and sustainability of global growth, with potentially large repercussions, especially for developing economies.”
It also highlighted the dangers of “high inequality and the renewed rise in carbon emissions.”