News / Economy

UN says East, South Asia Leading Mild Global Economic Recovery

The report issued Wednesday says the global economy is recovering and, if supportive policies continue, the world should see about 2.4 percent growth this year.

A woman stops her motorbike outside a shop in Vientiane (file photo)
A woman stops her motorbike outside a shop in Vientiane (file photo)

The United Nations is predicting a mild global economic recovery in 2010 with Asia leading growth. But the U.N. warns if governments withdraw stimulus measures too early, the global economy could slump again.

In its 2010 economic report the U.N. says East and South Asian economies will lead the world recovery.

The report issued Wednesday says the global economy is recovering and if supportive policies continue the world should see about 2.4 percent growth this year.

East Asia is expected to see average gross domestic product grow by 6.7 percent, the highest rate in the world, followed by South Asia at 5.5 percent.

Tiziana Bonapace is a senior economist with the U.N. Economic and Social Commission for Asia and the Pacific in Bangkok.

"I think this region is fortunate in the sense that it entered the financial crisis with strong macroeconomic fundamentals," said Bonapace. "Most countries had fiscal surplus at the start of the crisis and many had public debt levels that are below 60 percent of GDP."

Many countries in Asia quickly enacted plans to stimulate their economies after the global crisis began in 2008.

The report lauds Vietnam, Indonesia, and China for successfully spurring domestic demand with increased credit.

In contrast, the report says major developed economies are expected to grow at an average 1.3 percent in 2010.

Developing countries are expected to recover at a faster pace of 5.3 percent. Despite the quicker recovery, the U.N. report points out that in developing Asia and Africa the financial crisis pushed more people into jobs that do not provide social protections. The U.N. says since the crisis the global share of working poor has increased to 64 percent in 2009 from 59 percent two years earlier.

Bonapace says the Asia-Pacific region has weathered the crisis better than developed countries.

"There isn't the pressure on governments at the moment in this region that there is on governments in developed countries where deficits and public debts are much bigger and are growing at an alarming pace," he said. "So, I think the situation is better."

The U.N. says the global economic recovery is expected to be sluggish. Consumption and investment remain weak and unemployment continues to rise.

The report says much of the global rebound is the result of government stimulus efforts and warns if those measures are withdrawn too early, the world could dip back into crisis.

You May Like

Arab League Delays Forming Joint Force

Delay grows out of one of original obstacles facing pan-Arab force, analysts say: 'They may agree on the principle, but they continue to argue about how to implement the project' More

Pakistan Demands Afghanistan Protect Its Kabul Mission, Staff

Officials in Islamabad say Afghan agents are harassing Pakistani embassy personnel, particularly those living outside of mission’s compound More

US Survey: Trump Lead Grows in Republican Presidential Contest

Quinnipiac University poll shows brash billionaire real estate mogul with 28 percent support among Republican voters More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Colombians Flee Venezuela as Border Crisis Escalatesi
X
August 27, 2015 2:08 AM
Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Is China's Economic Data Accurate?

Some investors say China's wild stock market gyrations have been made worse by worries about the reliability of that nation's economic data. And some critics say the reports can mislead investors by painting an unrealistically-strong picture of the economy. A key China scholar says Beijing is not fudging ((manipulating)) the numbers, but that the economy is evolving quickly from smoke-stack industries to services, and the ways of tracking new economic activity are falling behind the change. V
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Shipping Containers Provide Experimental Housing

Housing prices around the San Francisco Bay area are out of reach for many people, so some young entrepreneurs, artists and tech industry workers are creating their own houses using converted shipping containers. But as VOA's Mike O’Sullivan reports from Oakland, the effort requires ingenuity and dealing with restrictive local laws.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video Technique May Eliminate Drill-and-Fill Dental Care

Many people dread visiting dentists because they're afraid of drills. Now, however, a technology developed by a British firm promises to eliminate the need for mechanical cleaning of dental cavities by speeding a natural process of tooth repair. VOA’s George Putic reports.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.
Video

Video French Experiment in Integrating Roma Under Threat

Plans to destroy France’s oldest slum have sparked an outcry on the part of its Roma residents. As Lisa Bryant reports from the Paris suburb of La Courneuve, rights groups argue the community is a fledgling experiment on integrating Roma who are often outcasts in many parts of Europe.
Video

Video Kenyans Turn to Agriculture for Business

Each year Kenyan universities continue to churn out graduates for the job market despite the already existing high rate of unemployment among youth in the country. Some of these young men and women have realized that agriculture can be as rewarding as any other business or job, and they are resorting to agribusiness in large numbers as a way of tackling unemployment. Rael Ombuor reports for VOA.
Video

Video First Women Graduate Elite Army Ranger School

Two women are making history for the U.S. Army by proving they are among the toughest of the tough. VOA's Carla Babb reports from Fort Benning, Georgia as 94 men and those two women rise as graduates of the difficult Ranger school.

VOA Blogs

World Currencies

EUR
USD
0.8770
JPY
USD
119.68
GBP
USD
0.6414
CAD
USD
1.3265
INR
USD
66.194

Rates may not be current.