The United Nations (UN) on 11 December 2017 released the World Economic Situation and Prospects (WESP) 2018 report in New York.
As per the World Economic Situation and Prospects 2018, the current macroeconomic conditions offer policy-makers greater scope to address some of the deep-rooted issues that hamper progress towards the Sustainable Development Goals.
Highlights of the World Economic Situation and Prospects 2018
• In 2017, world economic growth reached 3 per cent, the highest growth since 2011. The global growth is expected to remain steady at 3 per cent in 2018 and 2019.
• The recent pickup in global growth originates from firmer growth in several developed economies, although East and South Asia remain the world most dynamic regions.
• In 2017, East and South Asia accounted for nearly half of global growth, with China alone contributing about one-third.
• The end of recessions in Argentina, Brazil, Nigeria and Russia also contributed to the rise in the rate of global growth between 2016 and 2017.
• The world economy also faces longer-term challenges - increasing economic diversification, reducing inequality, supporting long-term investment and tackling institutional deficiencies.
• Few least developed countries (LDCs) are expected to reach the Sustainable Development Goal target for GDP growth of at least 7 per cent in the near term.
• Environmental sustainability Preliminary estimates suggest that the level of CO2 emissions increased in 2017. The frequency of weather-related shocks continues to increase, calling for building resilience against climate change and prioritizing environmental protection.
• Policies that target international shipping and aviation emissions, which do not fall under the purview of the Paris Agreement, need to be strengthened, as emissions from these sectors continue to grow faster than those from road transport.
• It calls for creation of a new financial framework for sustainable finance in alignment with the 2030 Agenda and the Addis Ababa Action Agenda that would shift the focus from short term profit to long term value creation.
Indian Economy as per World Economic Situation and Prospects 2018
As per the report, Indian economy is likely to grow by 7.2 per cent in 2018 and by 7.4 per cent in 2019 following its strong private consumption, public investment and the ongoing structural reforms.
The report has projected India with a positive outlook despite the slowdown in 2017 and the lasting effects of demonetisation.
Though the credit growth is restrained despite monetary easing, however bank recapitalisation and the Indian Bankruptcy Code (IBC) have the potential to revive credit growth.
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When: 11 December 2017