UN Forecasts World Economy To Grow 2.4% In 2010

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Wednesday, the United Nations said in a report that the global economic recovery is uneven and conditions for sustained growth remain fragile.

"Global economic recovery is expected to remain sluggish, employment prospects will remain bleak and inflation will stay low, the UN said in its annual global economic outlook.

Global gross domestic product is estimated rise by 2.4% this year after registering a 2.2% drop in 2009, the first contraction since the Second World War.

The major developed economies are not expected to provide a strong impulse to global growth in the near term, growing at a moderate 1.3% on average in 2010, the UN said. However, it would be a recovery from a 3.5% decline in 2009. Contrastingly, output growth in the developing countries is expected to recover at a faster pace, at 5.3% in 2010.

Moreover, the UN outlook showed that labor markets will remain weak. The report said a premature exit from the stimulus measures and a hard landing of the dollar due to the renewed widening of the global imbalances would risk economic recovery.

The report recommended continued fiscal stimulus measures in the short run, a continued focus on the rebalancing of economic growth in a number of respects, better policy coordination, strengthened global governance and more decisive reforms of the global financial system.

Wednesday, the United Nations said in a report that the global economic recovery is uneven and conditions for sustained growth remain fragile. (Market News Provided by RTTNews)