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U.N. report projects global economy growth to slow in 2022, 2023 -Breaking

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© Reuters. FILE PHOTO – Containers seen at Yangshan Deep-Water Port, Shanghai, China on October 19, 2020. REUTERS/Aly Son/File photo/File photo

UNITED NATIONS – According to a U.N. Report released Thursday, the global economy will grow by 4% in 2022 – compared to 5.5% last year – and increase 3.5% in 2023, amid rising inflation, COVID-19 infection, challenges in labor markets, and supply chain constraints.

The World Economic Situation and Prospects 2022 reported that 2021 growth momentum started to decrease after 2020’s contraction of 3.4%. It was caused by the diminishing effects of fiscal and monetary stimuli and supply-chain disruptions.

According to the U.N. Department of Economic and Social Affairs, rising inflationary pressures in developed countries and large numbers of developing nations pose additional risk to recovery.

The report stated, “Global headline inflation rose more than 2 percentage point above the trend rate of 10 years ago to an estimate of 5.2 percent”

The coronavirus pandemic could have a longer-lasting effect on inequality between and within nations.

A full recovery of GDP per head will be difficult for the majority of countries in developing. According to the report, “The gap between their achievements and the results they could have had without the pandemic persists well into 2023.”

The report stated, “Compared to the pre-pandemic projections, GDP per head in advanced economies will almost completely recover by 2023.”

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