On 17 January, the World Economic Situation and Prospects 2012 (WESP) will be launched in multi-city locations around the world. The first chapter of the report on the “Global economic outlook”, pre-released on 1 December 2011, reveals that persistent high unemployment, the euro area debt crisis and premature fiscal austerity have already slowed global growth and factor into the possibility of a new recession.

The forecast has been significantly downgraded compared to six months ago and predicts that, at best, the global economy will “muddle through” with the growth of world gross product (WGP) reaching 2.6 per cent in the baseline outlook for 2012 and 3.2 per cent for 2013, down from 4.0 per cent in 2010. 2012 is projected to be a make-or-break year in terms of proceeding with slow economic recovery or falling back into recession.

For more information: http://www.un.org/en/development/desa/policy/wesp/index.shtml

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