Reports

World economic recovery weak, uneven: UN report

(Xinhua)
Updated: 2010-05-28 09:25

Recovery from the world financial and economic crisis is weak and uneven, according to a United Nations report released here on Wednesday.

The world gross domestic product is expected to grow by just three percent in 2010 and 3.1 percent in 2011, said the updated report put out by a partnership of UN agencies, including the UN Department of Economic and Social Affairs (DESA).

With a contraction of more than five percent, Japan's economy performed the poorest and growth is expected to remain lackluster throughout 2010-2011, said the report, entitled, 2010 World Economic Situations and Prospects.

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Meanwhile, East Asia's economies have rebounded strongly with a favorable outlook over the next two years. Led by strong growth in China, regional gross domestic product (GDP) is expected to increase by 7.3 percent in 2010, up from 4.7 percent in 2009, according to the report.

China, again will be the region's fast growing economy in 2010 and 2011 with its GDP estimated to rise by 9.2 percent and 8.8 percent, respectively. In some East Asian countries, unemployment rates are now close to, or even below, pre-crisis levels, with further improvements expected in 2010.

However, while fewer developing counties are expected to register another year of declining per capita income in 2010, the impact of the crisis on labor markets and social conditions will continue to be felt.

Worldwide unemployment rose by more than 34 million people in 2009. Despite large amounts of lucidity injected in the financial system, credit growth remains feeble in developed countries creating a protracted period of elevated unemployment rates, said the report.

Stimulus measures should become more focused on boosting employment growth, the report said.

Meanwhile, much stronger international policy coordination is needed to prevent economic crises, such as the Greek debt crisis. The UN report warns leaders to see the fallout in Greece as a wakeup call not to let fears of large public debts prevent coordinated macroeconomic stimulus measures.