U.N. economists project that world economic growth will be sluggish this year.
In a report issued Thursday on the global economic situation and its prospects, experts said weak economic growth was likely to linger. They said lower oil prices, severe weather effects from El Nino, and political instability were contributing to 2016’s below-average showing.
“We are forecasting growth of just 2.4 percent this year, which is the same weak rate of growth which we saw in 2015,” said Dawn Holland, an economist with the U.N.’s Department of Economic and Social Affairs (DESA), which published the report.
She said the average annual rate of growth in the decade preceding the international financial crisis of 2008 was a full percentage point higher.
“We are not expecting that gap to close very soon,” Holland added. “Next year, the world economy is expected to grow by just 2.8 percent — still remaining well below that historical average level.”
“The report underscores the need for a more balanced policy mix to rejuvenate global growth,” said Lenni Montiel, assistant secretary-general for DESA.