Global Growth To Decline To 2.4% Amid Economic Slowdown: UNCTAD
For India, growth in 2022 rebounded to pre-pandemic levels and it is anticipated to continue into 2023, with unemployment rates remaining at 8.5 per cent in June 2023, employment is frustratingly low by historical standards
United Nations Conference on Trade and Development (UNCTAD) projected global economic growth to decelerate to 2.4 per cent in 2023 from 3 per cent in 2022. The report also stated that supply-side pressures have reduced, which has caused decline in inflation from its highs in late 2022, but this trend is slow and halting.
“Tighter monetary policy has so far contributed little to ease prices and has come at a steep cost in terms of inequality and damaged investment prospects,” the report stated. It also added that cost of living and inadequate wage growth continues to put pressure on household budgets worldwide.
The report highlighted the economic inequality is a major problem which is disproportionately affecting developing nations, notably as a result of the advanced economies’ monetary policy tightening.
It mentioned that along with the private and public sectors, the external sector has helped India’s economy flourish. It has been made possible partially due to divergence of trade away from the Russian Federation by other nations, with which India has strong ties. For India, growth in 2022 rebounded to pre-pandemic levels and it is anticipated to continue into 2023. With unemployment rates remaining at 8.5 per cent in June 2023, employment is frustratingly low by historical standards. Other indications, however, continue to advise caution, it added.
Its previous report “major economies are building back weaker and separately” had emphasized upon uneven post-pandemic global recovery and raised concerns regarding the future in light of weaker global growth and a lack of coordinated policies.
India’s growth is predicted to be 6.2 per cent in 2024 and 6.6 per cent in 2023, demonstrating the divergent post-pandemic recovery around the world. Brazil, China, India, Japan, Mexico, Russia and the United States are just a few of the economies that have shown resilience in 2023, while other nations face more difficult obstacles.