Global growth is expected to be only 2.5 percent this year. Last year, the size of the global economy increased by 5.6 percent, according to UNCTAD. Significant growth slowdowns are foreseen, especially in Western Europe and parts of Asia. In Russia, economists are also anticipating a deep recession.
Due to the high inflation, almost everyone will also have to deal with a loss of purchasing power. In poorer parts of the world, rising food and fuel prices could cause additional hunger and hardship, the organization said.
UNCTAD further points to the high debt levels that have risen significantly in the world during the pandemic. If central banks in the major economies start to raise interest rates, this could cause financial problems in developing countries.
UNCTAD is an organization engaged in promoting trade and economic development. This is done, for example, through research or technical assistance. UNCTAD also functions as a forum for consultation between governments.
Recently, the International Monetary Fund (IMF) warned that the war in Ukraine could have far-reaching consequences for the global economy in the longer term. IMF chief Kristalina Georgieva has also said that expectations for global economic growth for this year will have to be revised downwards because of the war. The IMF will release new forecasts in April.