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World on brink of one more recession, says UN

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United Nations: The United Nations has warned that the world is on the brink of another recession, projecting that global economic growth will slow down further in 2012 and even emerging powerhouses like India and China, which led the recovery last time, will get bogged down.

The UN 'World Economic Situation and Prospects 2012' report has cut the global growth forecast for next year to 2.6% from 4% in 2010. It has called 2012 a "make-or-break " year for the global economy, which will face a "muddlethrough" scenario and continue to grow at a slow pace.

"Following two years of anaemic and uneven recovery from the global financial crisis, the world economy is teetering on the brink of another major downturn," the UN report said, warning that "the risks for a double-dip recession have heightened" .


The report said the failure of policymakers, especially those in Europe and the United States, to address the jobs crisis , prevent sovereign debt distress and escalation of financial sector fragility poses the most acute risk for the global economy in 2012-2013 .
Growth in developing countries like India and China, which had stoked the engine of the world economy so far, will also slow down to 5.6% in 2012 from 7.5% in 2010.

"Developing countries are expected to be further affected by the economic woes in developed countries through trade and financial channels," the report said.
GDP growth in China and India is expected to "remain robust , but to decelerate" , it said.

India's economy is expected to expand by between 7.7% and 7.9% in 2012-2013 , down from 9% in 2010. In China, growth slowed from 10.4% in 2010 to 9.3% in 2011 and is projected to slow further to below 9% in 2012-2013 . Notably, the UN has revised its 2012 prediction downward for every major country. It projected 1.3% growth for the US (down 0.7% from its last forecast), 1.5% for Japan (down 1.3%), 0.5% for the 27-nation European Union (down 0.8%) and 8.7% for China (down 0.2%).



World on brink of one more recession, says UN - The Times of India

---------- Post added at 12:05 PM ---------- Previous post was at 12:03 PM ----------

In a way good news as it may help in decreasing inflation.
 
United Nations: The United Nations has warned that the world is on the brink of another recession, projecting that global economic growth will slow down further in 2012 and even emerging powerhouses like India and China, which led the recovery last time, will get bogged down.

The UN 'World Economic Situation and Prospects 2012' report has cut the global growth forecast for next year to 2.6% from 4% in 2010. It has called 2012 a "make-or-break " year for the global economy, which will face a "muddlethrough" scenario and continue to grow at a slow pace.

"Following two years of anaemic and uneven recovery from the global financial crisis, the world economy is teetering on the brink of another major downturn," the UN report said, warning that "the risks for a double-dip recession have heightened" .


The report said the failure of policymakers, especially those in Europe and the United States, to address the jobs crisis , prevent sovereign debt distress and escalation of financial sector fragility poses the most acute risk for the global economy in 2012-2013 .
Growth in developing countries like India and China, which had stoked the engine of the world economy so far, will also slow down to 5.6% in 2012 from 7.5% in 2010.

"Developing countries are expected to be further affected by the economic woes in developed countries through trade and financial channels," the report said.
GDP growth in China and India is expected to "remain robust , but to decelerate" , it said.

India's economy is expected to expand by between 7.7% and 7.9% in 2012-2013 , down from 9% in 2010. In China, growth slowed from 10.4% in 2010 to 9.3% in 2011 and is projected to slow further to below 9% in 2012-2013 . Notably, the UN has revised its 2012 prediction downward for every major country. It projected 1.3% growth for the US (down 0.7% from its last forecast), 1.5% for Japan (down 1.3%), 0.5% for the 27-nation European Union (down 0.8%) and 8.7% for China (down 0.2%).



World on brink of one more recession, says UN - The Times of India

---------- Post added at 12:05 PM ---------- Previous post was at 12:03 PM ----------

In a way good news as it may help in decreasing inflation.

there are 2 types of inflation.

one is the good type, where people love money, and the government responds by pumping in more money supply.

another is the bad type, called hyperinflation, where people hate money, so no amount of the government issued money will buy anything; that's why prices skyrocket.
 
Well, what do you expect when most of the "developed world" lives on debt and deficit-fueled consumption.

Even they know it is unsustainable, but they don't do anything to change it.
 

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