UNCTAD predicts global growth at 3.4pc
The report, based on data from 2006 and early 2007, says the main risk to this positive scenario is a major recession in the US which can sharply curtail exports from China and India.
By Agencies |
NAIROBI: The United Nations Conference Trade and Development (UNCTAD) has predicted a fifth consecutive year of overall global output growth this year.
UNCTAD says in its latest report the world economy is set to expand by 3.4 percent and the demand for primary commodities will rise and contribute to an overall increase in per capita gross domestic product (GDP) in developing nations.
The report, based on data from 2006 and early 2007, says the main risk to this positive scenario is a major recession in the US which can sharply curtail exports from China and India.
Recent instability in financial markets has heightened concerns and if a recession occurs, Chinese and Indian demand for commodities from other developing countries could fall significantly, UNCTAD says.
The report advises countries to form regional co-operation blocks in order to help reduce the vulnerability of developing nations to current account imbalances such as that of the US.
These trading blocks will also help to reduce their vulnerability to major shifts in exchange rates caused by speculative capital flows.
The report points out that regional co-operation can further help these countries to accelerate industrialisation and broaden the foundations of their economies so that they are more stable and better suited for long-term growth.
UNCTAD says in its latest report the world economy is set to expand by 3.4 percent and the demand for primary commodities will rise and contribute to an overall increase in per capita gross domestic product (GDP) in developing nations.
The report, based on data from 2006 and early 2007, says the main risk to this positive scenario is a major recession in the US which can sharply curtail exports from China and India.
Recent instability in financial markets has heightened concerns and if a recession occurs, Chinese and Indian demand for commodities from other developing countries could fall significantly, UNCTAD says.
The report advises countries to form regional co-operation blocks in order to help reduce the vulnerability of developing nations to current account imbalances such as that of the US.
These trading blocks will also help to reduce their vulnerability to major shifts in exchange rates caused by speculative capital flows.
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The report points out that regional co-operation can further help these countries to accelerate industrialisation and broaden the foundations of their economies so that they are more stable and better suited for long-term growth.
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