UN Warns of 2012 Global Recession, IMF Expected to Follow
The UN has lowered its benchmark forecast for global growth next year, pinning it at a mere 2.6%, just a hair above what is considered global recession territory, and they have suggested that downside risks are substantial.
According to the UN, the world is on the cusp of another major leg down in the Global Financial Crisis, and that without rapid and appropriate intervention, a severe global recession may unfold in 2012.
"Following two years of anemic and uneven recovery from the global financial crisis, the world economy is teetering on the brink of another major downturn," the UN report concluded.
The UN report adds that premature austerity is working in tandem with underlying weaknesses left in the wake of the 2008 Global Financial Crisis. "Most developed country governments have indiscriminately switched from fiscal stimulus to premature austerity measures. This has further weakened global aggregate demand, already nurtured by persistent high unemployment," it said.
According to the UN, the world is on the cusp of another major leg down in the Global Financial Crisis, and that without rapid and appropriate intervention, a severe global recession may unfold in 2012.
"Following two years of anemic and uneven recovery from the global financial crisis, the world economy is teetering on the brink of another major downturn," the UN report concluded.
The UN report adds that premature austerity is working in tandem with underlying weaknesses left in the wake of the 2008 Global Financial Crisis. "Most developed country governments have indiscriminately switched from fiscal stimulus to premature austerity measures. This has further weakened global aggregate demand, already nurtured by persistent high unemployment," it said.