UN / WORLD ECONOMIC PROSPECTS

Preview Language:   Original
25-May-2011 00:02:39
A new UN report released today said that large economies in developing countries - mainly China, Brazil and India -continue to lead the global recovery, amid weaker performances in relatively richer nations, where concerns over huge public debt have led to austerity measures that have dampened growth prospects. UNTV

Available Language: Original
Type
Language
Format
Acquire
/
Original
Other Formats
Description
STORY: UN / WORLD ECONOMIC PROSPECTS 2011
TRT: 2.39
SOURCE: UNTV
RESTRICTIONS: NONE
LANGUAGE: ENGLISH / NATS

DATELINE: 25 MAY 2011, NEW YORK CITY

SHOTLIST:

RECENT 2011, UNITED NATIONS HEADQUARTERS, NEW YORK CITY

1. Wide shot, exterior United Nations Headquarters

25 MAY 2011, NEW YORK CITY

2. Wide shot, press conference
3. Cutaway, journalists
4. SOUNDBITE (English) Rob Vos, Economist, Department of Economic and Social Affairs (DESA):
“The key message is, the main reason why we’ve upgraded this is that it’s a better than expected performance particularly emerging markets economies several of them. But also the slightly greater strength of the US economy that has led to upgrading our forecast but the recovery first remains rather uneven and its moderating, as we also concluded in our annual report, which could also be affected and will drag growth also in the developing countries.”
5. Cutaway, journalists
6. SOUNDBITE (English) Rob Vos, Economist, Department of Economic and Social Affairs (DESA):
“Then we have also seen a surge in flows which is concerning many of the emerging markets which see currency appreciation next to rising inflation and that’s also particularly where a lot of the countries have moved towards much more irrestrictive monetary policies much as introducing capital controls to stem those risks. But on the back of that is the risk of higher exchange volatility in the near outlook as much as the continued risk of a further downfall of the United States dollar.”
7. Cutaway, photographer
8. SOUNDBITE (English) Rob Vos, Economist, Department of Economic and Social Affairs (DESA):
“In Europe its pretty much a two speed recovery with some economies recovering fairly strongly particularly the German economy, but particularly the south of Europe could and also United Kingdom with still a very weak recovery averaging for the European fifteen, original fifteen countries of the European Union, about 1.7 percent growth which basically stabilizes the growth rates that they recorded in 2010. In developing countries the picture is pretty much the same except for in Arica of course where we’ve downgraded the forecast for Northern Africa given the political conflicts there and the weaker oil production prospects in Libya in particular but also continued protests in some other countries that is having economic consequences.”
9. Cutaway, journalists
10. Wide shot, press conference ends

STORYLINE:

Large economies in developing countries, mainly China, Brazil and India, continue to lead the global recovery, amid weaker performances in relatively richer nations, where concerns over huge public debt have led to austerity measures that have dampened growth prospects, according to a new United Nations (UN) report.

The mid-year issue of the World Economic Situation and Prospects (WESP), released today at headquarters in New York, points out that the outlook for growth is moderating in even the biggest economies in Asia and Latin America because of several increasingly pressing concerns.

Those concerns include rising inflation, emerging domestic asset price bubbles, and upward pressure on exchange rates, fuelled in part by large capital inflows.

The world gross product (WGP) is expected to grow by 3.3 per cent this year and 3.6 per cent in 2012, only a slight upward adjustment from the forecasts released in the WESP 2011 at the beginning of the year.

Unemployment in developed economies fell in some countries, but the number of people out of work for six months or longer continues to rise, according to the report, prepared by the UN Department of Economic and Social Affairs (DESA), UN Conference for Trade and Development (UNCTAD), and the five UN regional social and economic commissions. Unemployment also fell as a result of many jobless persons stopping their search for work, the report notes.

Among the economies in transition, employment improved in the Commonwealth of Independent States (CIS), but remained weak in South-Eastern Europe. Employment levels generally have returned to above pre-crisis levels in developing countries, especially in East Asia, according to the report.

At current levels of economic growth, it would four to five years before employment rates revert to pre-crisis levels in developed countries, according to the report.

The report warns that global recovery is still fragile and could suffer setbacks if public debt problems and continued financial sector fragility in developed economies are not adequately addressed and global commodity prices continue to surge, triggering further belt-tightening.

In the outlook for the rest of 2011 and for 2012, WESP predicts that more countries are expected to further unwind both monetary and fiscal support measures.

The report urges ensuring that sufficient resources are made available to developing countries, especially those with limited resources and which face huge development needs. The resources will be needed, in particular, to accelerate progress towards the achievement of the Millennium Development Goals (MDGs) and for investment in sustainable growth. It also calls for ways to achieve effective policy coordination among major economies.
Series
Category
Creator
UNTV
Asset ID
U110525c