The UN has published its economic report! Striking detail from Turkey
The UN has announced the report World Economic Situation and Prospects for 2023.
According to the report, the world economy faced a series of shocks in 2022, such as the ongoing effects of the Covid-19 pandemic and the energy and food crisis sparked by the Russia-Ukraine War.
While high inflation led to a decline in real income and an increase in the cost of living, many countries suffered economic damage, such as forest fires and floods, and weather events that led to humanitarian problems.
REASONS THAT WIN LOSSES
According to the report, rapid rate hikes by the US Federal Reserve (Fed) led to capital outflows and currency depreciation in developing countries.
Rising interest rates and declining purchasing power have weakened consumer confidence and investor sentiment, making the near-term growth outlook for the global economy even more uncertain.
World trade has softened due to reduced demand for consumer goods, the protracted war in Ukraine and ongoing supply chain problems.
THE ECONOMY WILL BE
According to the report, in this context, the UN’s global economic growth forecast, which was 3 percent in 2022, was set at 1.9 percent for 2023. This rate was recorded as the lowest growth forecast of the last years.
The report predicted that global economic growth would rise to 2.7 percent in 2024 if some macroeconomic headwinds began to ease.
On the other hand, the report, which is expected to gradually reduce inflationary pressures with the weakening of total demand in the world economy, noted that the near-term economic outlook remains uncertain due to the continuation of many economic, financial and , geopolitical and environmental risks.
RESTRAINT RISK IN MOST ADVANCED ECONOMIES
The current global economic slowdown is affecting both developed and developing countries, with many at risk of entering a recession in 2023, according to the report. Growth momentum in the US, the European Union (EU) and other developed economies is weakening, negatively affecting the rest of the world economy.
Growth in the US, estimated at 1.8% in 2022, is projected at just 0.4% in 2023. The EU growth forecast was 3.3% in 2022 , it was also reduced to 0.2% by 2023.
Economic growth in China is forecast to soar to 4.8 percent this year after the government abandoned its zero-COVID-19 policy and began easing monetary and fiscal policies. The UK economy is expected to contract by 0.8 percent in 2023.
ATTRACT TURKEY DETAIL
In the report, it was highlighted that the problems experienced in the supply of food, especially grain products, due to the Russia-Ukraine War were alleviated with the resumption of grain shipments from Black Sea ports at the initiative of Turkey and the UN.
In the UN report, the Turkish economy was estimated to grow 3.7 percent this year and 3.5 percent in 2024, after expanding 5.4 percent last year.
In addition, it is estimated that the inflation rate in Turkey will decrease to 42.4 percent on average by the end of this year and will decrease to 13.5 percent in the next year accelerating its decline. (AA)