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Persistent uncertainties in the global recovery

World economic outlook for 2011

The recovery of the world economy has started to lose momentum since the middle of 2010, and all indicators point at weaker global economic growth, according to an upcoming United Nations report, titled World Economic Situation and Prospects 2011. The UN expects that the world economy will expand by 3.1% in 2011 and 3.5% in 2012 – far from sufficient to enable recovering the jobs lost because of the crisis. A WDEV summary

 

In its annual report (WESP; see reference), the United Nations emphasizes that the outlook remains uncertain and surrounded by serious downside risks. The cooperative spirit among major economies is waning, which has debilitated the effectiveness of responses to the crisis. Uncoordinated monetary responses, in particular, have become a source of turbulence and uncertainty in financial markets ...


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