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Slow global GDP growth seen
Aggregated Source: Shanghai Daily: Business

GLOBAL economic growth is projected to grow slowly for the rest of the year, a United Nations economic forecast said yesterday.

The UN's Development Policy and Analysis Division released a mid-year update forecasting world gross product growth at 2.3 percent in 2013, "a subdued pace" characterized by sub-par expansion and weak employment prospects. The UN forecast improving growth in 2014 at 3.1 percent.

"In the United States, the avoidance of the fiscal cliff and the expansion of monetary easing, along with a continued recovery in the housing sector, have improved growth prospects," the forecast said, but "the automatic spending cuts and uncertainties associated with budget issues will continue to weigh on aggregate demand." US growth was forecast at 1.9 percent in 2013, down from last year's 2.2 percent. The report forecast US growth to rise to 2.6 percent in 2014.

In Europe, the forecast said, "the real economy is held back by austerity programs, weak bank lending and continued uncertainty, and only a very gradual recovery is expected as these factors diminish."

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