UN: World economic growth to drop steeply in next two years


The United Nations on Thursday projected a steep decline in world economic growth to 1.8% this year and 2.1% next year in the wake of the credit crisis, the housing slump in the United States and the drop in the value of the US dollar.

The world’s economic growth stood at 3.8% last year. Increases in food and energy prices are expected to contribute to economic problems as well as create social and political instability in some developing countries, the UN said in a mid-year study on the world economy and prospects in 2008. The study said the economic projection is a baseline scenario, which is subject largely to developments in the United States because the country remains a prime trend setter in the global economy. But it said, “If monetary and fiscal stimuli recently instituted in the US take hold, the world is likely to experience only a moderate slowdown, to 2.8% growth in 2008.”

It warned, however, that if the stimuli did not work and the continuing fall in US housing industry is coupled with a decline in equity prices and contraction of the credit availability, the world economy could come to a “virtual standstill.” (m&


Zwack Profit Climbs 8% Figures

Zwack Profit Climbs 8%

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Magnus Aircraft Signs CNY 65 mln Order Deals

Magnus Aircraft Signs CNY 65 mln Order

Accommodation Fully Booked Over Pentecost Weekend Tourism

Accommodation Fully Booked Over Pentecost Weekend


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.