Global growth to plummet to 1.9% in 2023: UN Report

Current Context: The United Nations Department of Economic and Social Affairs has released the World Economy Report, which states that global economic growth is slowing down and is projected to reach 1.9% in 2023.

• The report highlights that inflation affects private-sector investments, with global inflation projected to remain at 6.5% in 2023.
• Additionally, the report states that increasing bank interest rates will negatively impact countries’ overall economic growth, leading to a potential recession in 2024.
• The report also predicts challenges in achieving Sustainable Development Goals, increases in poverty and unemployment, and food insecurity for over 350 million people.
• The report recommends that governments avoid fiscal austerity and adjust their public spending policies to adapt to the changing global economy. It also advises investing in digital infrastructure, addressing climate change, and investing in new technologies.
• The report also includes predictions for economic growth in specific countries, such as India at 5.8% in 2023 and 6.7% in 2024, the United States at 1.9% in 2023 and 2.7% in 2024, Japan at 0.4% in 2023 and 1.6% in 2024, the United Kingdom at -0.8% in 2023 and 1% in 2024, and the European Union at 0.2% in 2023 and 1.6% in 2024.

Question:

Q.1 What does the United Nations Department of Economic and Social Affairs' World Economy Report state about the global economy?
a. Global economic growth is slowing down
b. Inflation affects private-sector investments
c. Report predicts challenges in achieving Sustainable Development Goals
d. Recommends governments to invest in digital infrastructure

e. All of the above