UN Says World Economy to Grow 2.4% in 2015

The world economy stumbled in 2015, with growth estimated at just 2.4 percent this year following a nearly 60 percent drop in oil prices and an over 20 percent fall in commodity prices in the last 18 months, according to a U.N. report released Thursday.

The report on the World Economic Situation and Prospects 2016 said many developing and former Soviet bloc countries suffered a broad slowdown to the weakest pace since the global financial crisis in 2008. The growth rate compares to 2.6 percent in 2014.

“Weak global growth continues to hurt labor markets,” U.N. Assistant Secretary-General for Economic Development Lenni Montiel said at a news conference. “Unemployment is on the rise in some regions, or remains stubbornly high in some countries. At the same time, job insecurity is becoming more entrenched amid the shift from salaried work to self-employment.”

One of the striking features is a sharp decline in investment across a large set of countries, said Hamid Rashid, chief of the Global Economic Monitoring Unit at the U.N. Department of Economic and Social Affairs. All but five of the 20 largest developing countries observed a decline in investment over the last 18 months, he said.

via Mainichi

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza