The recovery from the worldwide financial crisis continues to be confronted with setbacks ever since the middle of 2010 additionally , the prospect for development in next year remains grim, states a brand new UN document pre-released on Wednesday.
The particular annual United Nations document titled the “World Economic Situation and Prospects 2011 (WESP)” pointed to high unemployment rates, fiscal tightening up and the risk of international currency wars as the primary risks to global economic recovery.
The full report will be released in 2011.
Based on UN expectations, the world economy will most likely increase by 3.1 percent in next year and 3.5 percent in 2012 – most certainly lower than the numbers needed to recover the jobs lost during the economic crisis.
Rob Vos, director of the development policy and analysis division of the UN Department of Economic and Social Affairs (DESA), told reporters that “we are not out of the woods yet and greater risks are looming.”
The latest tensions around currency and trade, a weakening US Dollar, as well as exchange rate unpredictability have all contributed to an unclear outlook for next year and 2012.
Countries have already begun to enact protective monetary measures to maintain investment capital flowing into their financial systems. “There is still much more finger pointing,” than concrete policies, said Vos.
While the major financial systems of Europe, Japan and the United States continue to pursue uncoordinated monetary policies, turbulence and uncertainty in worldwide financial markets will continue to persist.
“Failure to arrive at more coordinated policy responses aimed at a more benign global rebalancing will put the process of economic recovery and the stability of financial markets at further risk,” notes the report.
In the mean time, the WESP report illustrates substantial lack of employment worldwide as “the Achilles heel for the recovery.”
The global economy will need to create close to 22 million fresh jobs in order to get pre-crisis employment levels, said Vos.
The particular document outlines five major challenges facing policy makers, which includes: delivering additional fiscal stimulus, redesigning policies aimed at job growth, obtaining better synergy between fiscal and monetary stimulus, ensuring the provision of development finance, and coordinating policies amongst major economies.
Source: BuaNews, internet-marketing-london.com, worldslatestnews.com, topnews.in, abcnews.go.com, Reuters.com