Joint Meeting of the Second Committee and the ECOSOC on the Global Economic Outlook

"The global economy is still in a very precarious situation and the outlook is most sobering". Robert Vos, Director of the Development Policy and Analysis Division of UN/DESA, presented the Global Economic Outlook at a special joint Second Committee and ECOSOC meeting in New York today and outlined three key messages on the current global economic situation:

• First, the weaknesses in the major developed countries continue to be at the root of these global economic woes. Most of these countries, particularly in Europe, are dragged in a vicious downward spiral, where heightened sovereign risks, continued banking fragility, fiscal austerity measures, slower growth and rising unemployment are feeding into each other.
• Second, the risks and uncertainties are slanted to the downside. Immediate risks are the further deepening of the euro crisis and the continued budget policy impasse in the United States that could lead to a renewed global recession. Many emerging economies could also face the risk of a hard landing after having grown very fast in the last decade.
• Finally, although there have been major efforts to break out of this vicious cycle, particularly with an emphasis on monetary expansion and structural reforms, the effects have been muted at best. TheUN/LINK Global Economic Outlook proposes a different and more comprehensive policy approach, moving away from the current emphasis on fiscal austerity to focus more on short- and long-term measures to stimulate jobs growth, including by investing in green growth, accelerate financial sector reforms, and better coordination of fiscal and monetary policies at the national and international levels.

A full webcast of the meeting is available from UNTV