: Policy mistakes could trigger worse recession than 2007 crisis: UNCTAD #IndiaNEWS #International The world is headed towards a global recession and prolonged stagnation unless fiscal and monetary

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Policy mistakes could trigger worse recession than 2007 crisis: UNCTAD #IndiaNEWS #International
The world is headed towards a global recession and prolonged stagnation unless fiscal and monetary policies holding sway in some advanced economies are quickly changed, according to a new report released on Monday by the UN Conference on Trade and Development (UNCTAD).

“There is still time to step back from the edge of recession,�? said UNCTAD chief Rebeca Grynspan.
‘Political will’
“This is a matter of policy choices and political will,�? she added, noting that the current course of action is hurting the most vulnerable.

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. @UNCTADs Trade & Development Report 2022 projects global growth will slow to 2. 2% in 2023 & warns of a global recession.
It calls for an urgent shift in policies & outlines actions to move the world economy in the right direction. t. co/eRuUBdcPNP #DevelopmentMatters t. co/tjeFIFk6qm

UNCTAD, the UN trade & development body

UNCTAD
October 3, 2022

UNCTAD is warning that the policy-induced global recession could be worse than the global financial crisis of 2007 to 2009.
Excessive monetary tightening and inadequate financial support could expose developing world economies further to cascading crises, the agency said.
The Development prospects in a fractured world report points out that supply-side shocks, waning consumer and investor confidence, and the war in Ukraine have provoked a global slowdown and triggered inflationary pressures.
And while all regions will be affected, alarm bells are ringing most for developing countries, many of which are edging closer to debt default.
As climate stress intensifies, so do losses and damage inside vulnerable economies that lack the fiscal space to deal with disasters.
Grim outlook
The report projects that world economic growth will slow to 2. 5 per cent in 2022 and drop to 2. 2 per cent in 2023 – a global slowdown that would leave GDP below its pre-COVID pandemic trend and cost the world more than trillion in lost productivity.
Despite this, leading central banks are sharply raising interest rates, threatening to cut off growth and making life much harder for the heavily indebted.
The global slowdown will further expose developing countries to a cascade of debt, health, and climate crises.
Middle-income countries in Latin America and low-income countries in Africa could suffer some of the sharpest slowdowns this year, according to the report.
Debt crisis
With 60 per cent of low-income countries and 30 per cent of emerging market economies in or near debt distress, UNCTAD warns of a possible global debt crisis.
Countries that were showing signs of debt distress before the pandemic are being hit especially hard by the global slowdown.