United Nations released its forecast report World Economic Situation and Prospects 2013 (Update as of mid 2013) in the third week of May 2013. The latest Economic Forecast from United Nations (UN) projected that the global economic growth can gain a slow momentum for the rest of the year as a result of improved global financial conditions.
The forecast has cleared that after a down-turn of over two years, it is expected that the global economic activity will gain momentum in the second half of 2013 and 2014 being backed by the accommodative monetary policies in the developing and developed economies. As per the forecast the moderate pick-up activity will be witnessed by the world but the growth will be seemingly below potential. The employment gains mainly in the developed economies will remain weak. The short term risks associated with the economic slowdown in the large developing nations, fiscal adjustments of US and the worsened situations of the Euro Area have gone down but haven’t diminished.
The risks carries both the possibilities one is of returning back on a good track and the second one is of getting derailed the improving world economy.
The forecast has put forward a light for the policy makers to look forward for a balanced global recovery with a focus on job creation to be prioritized. To mitigate the negative policy spillovers and to promote cooperation and curb protectionism, as per the forecast there exists a need of enhancing the International Policy Coordination as this will help in reforming the international financial system and ensuring sufficient resource flows in developing economies and in the third world nations.