Following the examples of the International Monetary Fund and the World Bank, the United Nations has downgraded its forecast for global economic growth the year. The UN report on the World Economic Situation and Prospect now forecasts just two point four percent output growth for the planet this year, which would represent the same performance as last year.
As reported by the Associated Press, the new forecast represents a significant drop from the two point nine percent growth the U.S. had forecast for twenty sixteen last December. Projections for a number of nations in Africa and Latin America have been downgraded. The same is true for Russia and many of the former Soviet republics.
The report blames a number of factors for this year’s lackluster and disappointing economic prospects, including persistent weak demand in major economics, the low price oil and other commodities that are hurting many exporting nations, severe weather-related shocks, political challenges and large capital outflows in many developing regions.
The UN’s forecast for U.S. growth this year stands at two point two percent, which would be a bit worse than last year’s two point four percent performance. Business investment and exports remain weak spots domestically.
