UN says prospects dim for robust global recovery despite uptick for China, US and EU

The United Nations yesterday [Macau time] forecast a slight uptick in economic growth in the United States, the European Union and China, but said prospects for a robust global economy recovery this year remain dim, pointing to stubbornly high inflation, the lingering effects of the COVID-19 pandemic, war in Ukraine, and the worsening impact of climate change.

For many developing countries, it said, growth prospects have deteriorated amid tightening credit conditions and rising costs of external financing.

According to the report, the world economy is now expected to grow by 2.3%, up from the U.N.’s forecast of 1.9% on Jan. 25, but still well below the estimated 3.1% in 2022.

Global inflation is now projected to decline from 7.5% last year to 5.2% this year.

In the U.S., “resilient household spending” this year led the U.N. to increase its 2023 forecast from 0.4% in January to 1.1%. In the EU, lower gas prices and robust consumer spending led to an increase in projected growth this year from 0.2% to 0.9%. And as a result of China’s lifting of COVID-19 restrictions, its economic growth is now forecast to increase from 4.8% to 5.3% in 2023, the U.N. said.