UN cuts 2015 global growth view to 2.4%

United Nations - The UN report cited rising volatility in exchange rates and capital flows and stagnant investment and productivity growth as factors behind slowing global growth.

The United Nations on Thursday said it cut its forecast for global economic growth in 2015 by 0.4 percentage point to 2.4 per cent, largely due to lower commodity prices, increased market volatility and slow growth in emerging market economies.
There will be a slight pickup next year, the world body said in its annual World Economic Situation and Prospects report.
"The world economy is projected to grow by 2.9 per cent in 2016 and 3.2 per cent in 2017, supported by generally less restrictive fiscal and still accommodative monetary policy stances worldwide," the UN said in a statement accompanying the report.
The International Monetary Fund, also in the UN family, said in October that it had cut its global growth forecast for this year by 0.2 percentage point to 3.1 per cent. The IMF also cited declining commodity prices and weaker economic prospects for large emerging market economies.
"Given the much anticipated slowdown in China and persistently weak economic performances in other large emerging economies, notably the Russian Federation and Brazil, the pivot of global growth is partially shifting again towards developed economies," the UN statement said.
The UN report said growth in developing and transition economies was at its weakest since the global financial crisis of 2008-09.
In addition to macroeconomic uncertainties and weak commodity prices, the UN report cited rising volatility in exchange rates and capital flows and stagnant investment and productivity growth as factors behind slowing global growth.
Global manufacturing up
World manufacturing output grew modestly by 2.7 per cent in the third quarter of 2015. For the first time in recent years, the growth trend in industrialised economies was upward compared to declining trend in developing and emerging industrial economies, according to a report by the United Nations Industrial Development Organisation (Unido).
Manufacturing output grew by 1.5 per cent in industrialised economies, up from 0.9 per cent in previous quarter. In developing and emerging industrial economies, the growth rate dropped to five per cent, down from 5.3 per cent in the previous quarter.
Eurozone industrialised countries have further improved their growth thanks to an increase in commodity exports prompted by lower energy costs and the depreciation of the euro against major world currencies. Manufacturing in the United States was upset by a stronger dollar and a consequent loss of exports.