My Google Page Rank

UN: European debt crisis, high unemployment threatens global economy

PDFPrintE-mail

Tehran - A United Nations report launched Tuesday said that countries throughout the world will experience an economic slowdown this year as the sovereign debt crisis in Europe continues to unfold.

According to the United Nations Information Center in Tehran, the report also warns that governments must urgently address high unemployment rates, particularly among youth.

The World Economic Situation and Prospects 2012 (WESP) report gives a detailed picture on seven geographical regions and forecasts that growth rates for the next two years will slow down in most of them, with the exception of the African continent, which will continue to enjoy growth due to stable commodity prices and foreign investment.

The risks of further worsening of the situation in Europe and the United States have increased.

The report, released by the UN Department of Economic and Social Affairs (DESA), points to the European sovereign debt crisis that erupted in Greece last May as a major shock to the global economy, whose multiple negative effects will continue to reverberate around the world.

“Failure of policymakers, especially those in Europe and the United States, to address the jobs crisis and prevent sovereign debt distress and financial sector fragility from escalating poses the most acute risk for the global economy in the outlook for 2012-2013,” the report states.

The report estimates that growth in the European Union (EU) is expected to be only 0.7 per cent in 2012, substantially lower than the 1.6 per cent growth registered last year. In addition, unemployment throughout the continent will remain near 10 per cent in the euro area, having changed very little since September 2009.

Africa is expected to continue to grow, defying the global trend. The continent is forecast to see an increase in its overall growth from 2.7 per cent in 2011 to 5 per cent in 2012 and 5.1 per cent in 2013. This growth will mainly be driven by relatively strong commodity prices, solid external capital inflows and continued demand and investment from Asia.

However, growth will vary greatly among countries in the continent due to military conflicts, corruption, lack of infrastructure and severe drought in certain areas. The report also warns that unemployment and poverty remain major problems and sources of instability, which have already led to political unrest in North Africa.

South Africa is expected to have the strongest economic growth in 2012, supported by growing demand from Asia, continued fiscal stimulus measures and an increase in consumption driven by rising wages.

The economic picture in the Arab World will continue to be subject of high uncertainty due to the political transition and civil protests brought by the Arab Spring. Regional growth is forecast to decline from 6.6 per cent to 3.7 per cent as violent clashes hampered economic activity in several Arab countries. Social unrest also affected trade and tourism revenues, particularly in Lebanon.

However, the report states that generous social spending measures implemented in 2011 by Arab governments such as Saudi Arabia as a way to alleviate popular protests helped boost economic growth and the impact of these measures will continue to be felt throughout 2012.

As with Europe and Africa, unemployment remains a key problem in the region. Despite extremely low female participation rates, unemployment rates in the region are among the highest in the world, especially among the educated youth, and the report warns that leaving unemployment unaddressed represents a major risk to stability in the region.

In East Asia growth is projected to decline to 6.9 per cent in both 2012 and 2013. China, the biggest economy in the region, is also expected to slow down from 9.3 per cent to 8.7 per cent growth in 2012. A major deceleration from China, however, would represent a more pronounced slowdown for the rest of the region.

The South Asian and Latin American and Caribbean regions remain particularly susceptible to the future of developed economies as both the EU and the US are key export markets as well as sources of tourism revenue.

For Latin America, a slowdown in China would also adversely affect the region as it is a major buyer of its commodities and a key investor in South America.

“Clouds over the region are darkening. The risks of further worsening of the situation in Europe and the United States have increased,” UN economist Rob Vos said in his presentation of the report in Mexico City. “Latin American and Caribbean economies would be hard hit and growth could drop below 1 per cent in the region, with Brazil stagnating and Mexico falling into recession along with the United States economy.”

Last month, DESA had warned that premature fiscal austerity measures by developed countries risked prompting a new global recession, and recommended additional stimulus measures to stimulate job creation and investment.

By PNA/IRNA




Related news items:
Newer news items:
Older news items:

Add comment


Security code
Refresh

SANGGUNIANG PANLUNGSOD... ACHIEVERS 2017

27 Jul 2017 Hits:52 Be the first to comment!

El Govierno local del Ciudad de Zamboanga ya organiza mga torneo para del maga empleado donde el maga participantes sale na diferente departamento. Diferente desportes el puede participa juga maga empleado.  Este el oportunidad con el maga antes athleta para dale mira  diila abilidad y discubri nuevo talento . Tiene tambien alyi ya lang ya aprende durante na juego que sila ya participa . Este programa una ves na un año . Miembro del SP-OSSP Team: Consejal Aljihan R. Edding, Consejal Elbert C. Atilano Sr., Jomar Fermisa, Ken M. Llvisma, Hardy Bayot, Carla Lim, Michelle A. Jose y Vita Agan -1st Single Badminton Champion women . 2017 Individual women Single – Champion Team tie event Badminton               [...] Read more

Prev Next Page:

ZAMBOANGA CITY… 2ND RUNNER UP - MAYOR’S CUP… ARAW NG IPIL BASKETBALL TOURNAMENT.

25 Jul 2017 Hits:92 Be the first to comment!

El ya organiza para hace con este Team Zamboanga City amo si Bernard Gonzales y ele el ya para como el manager hunto con Atty Dino Ferrer para contesta todo [...] Read more


STREET SHOOTER... DEX

24 Jul 2017 Hits:151 Be the first to comment!

Este si Dexter Montojo Garcia , Ta llama conele mga barcada  “Dex”, 28 años de edad, 5’11” el altor y residente de Lumiyap Divisoria, Ciudad de Zamboanga . Su mayores [...] Read more


ZAMBOANGA CITY WESTERN EAGLES CLUB SPORTFEST

23 Jul 2017 Hits:100 Be the first to comment!

Este el  TFOE Philippine Eagle WMR -3  ZCWEC Basketball League que ya encabesa el Presidente de ZCWEC  Eagle  Jimmy  U. Cabato y el Tournament Manager si Eagle Allan E. Lagumbay [...] Read more


SPEED FIRE... RONNEL

21 Jul 2017 Hits:107 Be the first to comment!

Este si Ronnel Ivan Lao Basiri, conosido na nombre “Ronnel” , 22 años de edad, 5’7” el altor , soltero y residente de Tetuan , Ciudad de Zamboanga .Si Ronnel [...] Read more


Mayor, security sector meets with Maranao leaders

20 Jul 2017 Hits:151 Be the first to comment!

Mayor Beng Climaco and the security sector met with leaders of the Maranao community in Zamboanga to discuss issues pertaining to the ongoing Marawi crisis, the condition of Maranao families [...] Read more


D’ FAST and D’ FURIOUS... KAN

20 Jul 2017 Hits:126 Be the first to comment!

Este si Hemill Kan Lao Basiri , ta llama conele na palayao “KanKan”, 25 años de edad, 5’5” el altor, y residente de Tetuan , Ciudad de Zamboanga . Su [...] Read more


Man hacked by neighbor

19 Jul 2017 Hits:120 Be the first to comment!

A man was hacked by his neighbor near Jumbo Bridge in Barangay Guiwan, this city, on Sunday night. The victim was identified as Jimmy Delos Reyes Viray, 39, single, a resident [...] Read more


D’ SLASHER... BRYAN

19 Jul 2017 Hits:103 Be the first to comment!

Este si Bryan Russel Balansag Animos , ta llama conele “Bryan “, 26 años de edad, 5’10 el altor , soltero y residente de Pasonanca Ciudad de Zamboanga . Su [...] Read more


D’ QUICK BROWN FOX … Rhon Rhon

18 Jul 2017 Hits:123 Be the first to comment!

Este si Ronnel  Tatud Daruca , ta llama conele na palayao “Rhon Rhon”, 28 años de edad , 5’8” el altor , soltero y residente de Tumaga , Ciudad de [...] Read more


D’ HAWK... ALVIN

17 Jul 2017 Hits:115 Be the first to comment!

Este si Alvin John Bernardo Munio , ta llama conele “Alvin”, 31 años de edad, 6’1” el altor , y residente de Caragasan , Maasin , Ciudad de Zamboanga . [...] Read more


DOLPHIN MOVES... JUN JUN

16 Jul 2017 Hits:151 Be the first to comment!

Este si Angelito Surjedo Pacatang Jr., ta llama conele na palayao “Jun Jun” , 26 años de edad , 5’8” el altor y residente de Callejon Drive . Guiwan , [...] Read more


(Sharing Time) There’s no end of the world, but only..

16 Jul 2017 Hits:119 Be the first to comment!

TO disabuse the minds of many, there’s no destruction of our planet Earth in its physical form. The earth won’t at all go kaput or be devastated into pieces. The [...] Read more


IRON MAN PLAYER… Modz

15 Jul 2017 Hits:125 Be the first to comment!

Este si Modivar Mabolo Enriquez, ta llama conele na palayao “Modz”, 36 años de edad,  5’10” el altor, casao y su esposa si Leslie Morales Enriquez, diila mga anak si [...] Read more


Man stabbed in Ayala

15 Jul 2017 Hits:132 Be the first to comment!

A man was allegedly stabbed while walking with his common-law-wife in Dumagsa, Barangay Ayala, this city, on Wednesday night. Reports coming from Police Station 9 identified the victim as Jessie Dagooc [...] Read more


CHO withholds occupancy permits for Z3R housing units

15 Jul 2017 Hits:112 Be the first to comment!

The City Health Office has withheld its recommendation for the issuance of occupancy permits for the housing projects under the Zamboanga City Roadmap to Reconstruction and Rehabilitation (Z3R) due to [...] Read more


Driver surrenders to soldiers after bumping girl on road

14 Jul 2017 Hits:137 Be the first to comment!

For fear of retaliation from the family of his victim, a Public Utility Van (PUV) driver surrendered to the members of the Philippine Marines manning a checkpoint at Barangay Muti, [...] Read more


WILD CAT MAGIC… DASH

14 Jul 2017 Hits:127 Be the first to comment!

Este si  Esa, Al-Daser Hajiri , ta llama conele na palayao “Dash”, 22 años de edad, 5’10” el altor y residente de Armor Village, San Jose Gusu Ciudad de Zamboanga [...] Read more


D BARKER… SAN SAN

13 Jul 2017 Hits:143 Be the first to comment!

Este si Ensan Wil Delos Santos, ta llama conele na palayao “San San”, 24 años de edad, 5’6” el altor , casao y su esposa si Reivarie Joyce T Reyes [...] Read more