UN report: global economy weakening
Published: Tuesday, Oct 29th 2024, 16:00
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Good economic growth rates are probably a thing of the past, according to a UN report. The UN Conference on Trade and Development (Unctad) expects global growth of 2.7 percent this year and next year, after an average of 3 percent in the years 2001 to 2019.
This hits poorer countries particularly hard. Countries with raw materials that are necessary for the transition to a greener economy could benefit from global trade, writes the organization in its report published in Geneva on Tuesday. These include rare earths or cobalt, lithium and nickel. Within the UN organizations, Unctad is particularly committed to the interests of poorer countries.
But in an age of a weak economy, high debt, little investment and growing protectionism in richer countries, new thinking is also needed to help poorer countries move forward, according to the report.
More tax justice, fewer austerity measures
Unctad has high hopes for a proposed UN convention on global tax cooperation. This could prevent tax evasion and illegal financial flows and free up more money for development. A global safety net is also needed for highly indebted poorer countries. It would have to provide liquidity without the austerity requirements that the International Monetary Fund (IMF) always imposes.
According to Unctad, economic growth in low-income countries has declined significantly: after an average annual growth rate of 6.6 percent between 2003 and 2013, the growth rate shrank to an average of 4.1 percent in the following decade.
China, which is considered a developing country by the United Nations, played a large part in this. This means that things looked even bleaker for many very poor countries.
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