UN says prospects dim for robust global economic recovery despite uptick for US, EU and China

UNITED NATIONS (AP) — The United Nations on Tuesday forecast a slight uptick in economic growth in the United States, the European Union and China, but said prospects for a robust global economy recovery this year remain dim, pointing to stubbornly high inflation, the lingering effects of the COVID-19 pandemic, war in Ukraine, and the worsening impact of climate change.

The U.N. Department of Economic and Social Affairs said in its mid-2023 report on economic expectations for the year that “uncertainties and poor growth prospects continue to bedevil the world economy.” For many developing countries, it said, growth prospects have deteriorated amid tightening credit conditions and rising costs of external financing.

According to the report, the world economy is now expected to grow by 2.3%, up from the U.N.’s forecast of 1.9% on Jan. 25, but still well below the estimated 3.1% in 2022.

Global inflation is now projected to decline from 7.5% last year to 5.2% this year.