Global economic growth projected to slow down to 1.9pc this year: UN report
A new United Nations report warns that the global economic growth is projected to slow down to only 1.9 per cent in 2023, sharply lower than the 3pc in 2022. However, the report says, the global growth is forecast to moderately pick up to 2.7pc in 2024. This will be one of the lowest growth rates in recent decades, apart from the 2007-8 financial crisis and the height of the Covid-19 pandemic, said the World Economic Situation and Prospects 2023 report, released on Wednesday The outlook for South Asia has deteriorated and is subject to multiple downside risks amid global monetary tightening, fiscal vulnerabilities, rising inflation and extreme weather vents. The regional GDP growth is expected to slow to 4.8pc in 2023 from an estimated 5.6pc expansion in 2022. In Pakistan, the economy is expected to expand by only 2.5pc in 2023 as devastating floods caused significant damages, particularly for agriculture, with spillover effects on related industrial and service sectors. Overall, weaker global demand, tighter monetary policy, additional supply disruptions, further escalation in commodity prices and the emergence of new Covid-19 variants pose significant risks in 2023.