The United Nations said on Monday it expects the world economy to grow 3 percent this year, and in 2020 it is slightly below its 3.1 percent growth rate in 2018.
But the United Nations said in its annual economic outlook report “The World Economic Situation and Prospects” that there is a need for urgent and concrete policy action to put the world on track towards achieving the UN’s poverty eradication goals by 2030, according to Reuters.
“There are a lot of yellow lights flashing, some of which will probably turn red in the years to come, with unpredictable consequences,” said Richard Kozul Wright, director of the UNCTAD Division on Globalization and Development Strategies.
“Growth is fragile, there is still a huge blur, risks are on the horizon, we have not gotten rid of the repercussions of the financial crisis in 2008-2009, we are still in an unusual new situation.”
Employment rates are rising, but job quality remains low, and much higher levels of economic growth are needed in Africa to lift people out of poverty, the report said.
More than 700 million people live below the extreme poverty line, set in 2011 at $ 1.90 per day, in purchasing power parity terms, and half in sub-Saharan Africa.
“In Africa, there is a need to raise economic growth to double-digit levels to reach targeted poverty reduction rates, well above the growth rates recorded over the last 50 years,” the report said.
There are risks associated with the slowdown in growth in Germany and China, the Italian banking system, Britain’s exit from the EU, and the fact that the world economy is still burdened with debt ten years after the global financial crisis.