United Nations World Economic Situation and Prospects(WESP) 2020

News:United Nations(UN) has released its World Economic Situation and Prospects(WESP) 2020.


About WESP Report,2020:

  • The report is released annually by the United Nations Department of Economic and Social Affairs(UN/DESA), the United Nations Conference on Trade and Development(UNCTAD) and the five United Nations regional commissions.

Report on Global Economy:

  • The global economy suffered its lowest growth in a decade slipping to 2.3 per cent in 2019 due to prolonged trade disputes.
  • However,the growth could improve to 2.5 percent in 2020.But a flareup of trade tensions, financial turmoil or an escalation of geopolitical tensions could slow down the growth to 1.8% in 2020.
  • East Asia remains the world’s fastest-growing region and the largest contributor to global growth,
  • Further,a prolonged weakness in global economic activity may also cause significant setbacks for sustainable development including the goals to eradicate poverty and create decent jobs for all. 
  • The report also noted that the share of the population living in extreme poverty has declined steadily and significantly over the past few decades, largely owing to successful experiences in China and India. 
  • At the same time,pervasive inequalities and the deepening climate crisis are fueling growing discontent in many parts of the world.

Report on India’s Growth:

  • The report lowered its GDP growth estimate for India to 5.7% from 7.6% in the financial year 2019-20.However,the UN has projected India’s GDP growth to accelerate to 6.6 per cent in 2020-21.
  • Further,the report has also forecasted a growth rate of 6.3% for the fiscal beginning in 2021.
  • The report has also said that one in five countries will see per capita income stagnate or decline this year.But India will be among the few countries where the per capita GDP growth rate could exceed 4% level in 2020.