UNITED NATIONS—As world economic growth remains weak, world gross product will grow by just 2.4 percent in 2016, the same pace as in 2015, said a UN report here on Thursday.
This marked a downward revision of 0.5 percentage points from UN projections in December 2015.
The World Economic Situation and Prospects as of mid-2016 report, released by the UN Department of Economic and Social Affairs, pointed out that persistent weakness in aggregate demand in developed economies remains a drag on global growth.
Low commodity prices, mounting fiscal and current account imbalances as well as policy tightening have further dampened prospects for many commodity-exporting economies in Africa, Latin America and the Caribbean, it added.
“Economic activity in the world economy remains lackluster, with little prospect for a turnaround in 2016,” it noted.
In addition, China’s economy is projected to grow by 6.
4 percent in 2016 and 6.5 percent in 2017, in line with the government target, said the report.
Lenni Montiel, assistant secretary-general for economic development, said a more balanced policy mix is needed to rejuvenate global growth and to create favorable conditions for the world’s sustainable development.