Global growth projected to slow, major risks looming: UN reportListen /
The European debt crisis is currently the biggest threat to the world economy, according to a report released on Thursday by the United Nations Department of Social and Economic Affairs (DESA).
The UN World Economic Situation and Prospects (WESP) 2012 mid-year update warns that austerity measure in Europe will plunge the region further into recession.
Assistant-Secretary-General for DESA, Jomo Kwame Sundaram says a shift in fiscal policies is needed to stimulate growth.
"International cooperation is extremely important because it will insure that all countries, all economies will benefit from international cooperation. It is not a situation as if some countries the richer countries will contribute and the poorer countries will benefit. What the WESP mid-year update shows is that all regions will benefit in terms of output recovery from such International cooperation."
According the report, the world gross product (WGP) is projected to grow by 2.5 per cent this year, following growth of 2.7 per cent in 2011.