UN World Economic Situation and Prospects 2023 Report

January 26, 2023

Ukraine – Russia war is creating energy crises, increasing inflation, and causing debt issues all over the world. Amidst these conditions and climate emergencies, the United Nations Department of Economic and Social Affairs launched the “World Economic Situation and Prospects” report or simply the World Economy Report. The report says that the economic growth of the world is slowing down. It is to reach 1.9% in 2023 from 3% in 2022.

Key Findings of the Report

Increasing inflation is to affect the private-sector investments
Global Inflation is to remain at 6.5% in 2023
Banks are to increase the interest rates and therefore, the overall economic growth of countries will be at stake
Countries will face recession as they enter 2024
The countries are to face heavy challenges in achieving the Sustainable Development Goals
Poverty levels are to increase
People will face unemployment. Those who are already in the job will encounter job insecurity
Losses in women’s employment
More than 350 million are to face food insecurity

Recommendations

Governments should avoid fiscal austerity. Fiscal austerity is economic measures that contain spending cuts, and tax increases. It is used by governments to decrease the deficits they face in fund allocation
Governments should change their public spending policy in accordance with the changing global economy
Social protection systems should be strengthened
Temporary subsidies shall be provided
Discounts on utility bills
Report advice: Invest in digital infrastructure, climate change, and new technologies

Predictions made

India’s economic growth rate as predicted by the report is 5.8% in 2023 and 6.7% in 2024
USA: 1.9% in 2023 and 2.7% in 2024
Japan: 0.4% in 2023 and 1.6% in 2024
UK: -0.8% in 2023 and 1% in 2024
EU: 0.2% in 2023 and 1.6% in 2024

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