UNCTAD warns: Monetary policies in advanced economies tip the world into recession
Xinhua News Agency, Geneva, October 3 (Reporter Chen Binjie) The United Nations Conference on Trade and Development (UNCTAD) warned on the 3rd that the monetary and fiscal policies of developed economies may plunge the global economy into recession and long-term stagnation. The crisis and the 2020 Covid-19 shock have worsened the damage.
The “2022 Trade and Development Report” released by UNCTAD on the 3rd pointed out that the rapid increase in interest rates and the tightening of fiscal policies in developed economies, combined with the negative impact of the new crown epidemic and the Ukraine crisis, have turned the global economy from a slowdown to a downturn. A soft landing is unlikely.
The report believes that during a decade-long period of ultra-low interest rates, many central banks have never achieved their inflation targets, nor have they promoted healthier economic growth. Any idea of lowering prices through higher interest rates without creating a recession is an “imprudent gamble”.
The world economy is expected to grow by 2.5% in 2022, before decelerating to 2.2% in 2023, the report said. All regions of the world will be hit by the slowdown, but developing countries will be hit particularly hard, with average growth projected to fall below 3%, which is insufficient for sustainable development and will further squeeze the public sector. and private fiscal space, undermining job prospects.
UNCTAD is a permanent United Nations agency dealing with issues related to trade and development. Its purpose is to maximize trade and investment opportunities for developing countries, and to help them meet the challenges brought regarding by globalization and integrate into the world economy on an equitable basis. .
(Editor in charge: Miao Su)
