Indiatimes | The Times of India | The Economic Times | Log In | Join |

413k Like

International Business
nmlkjNews nmlkjStock Quote
Type Company Name
Home

News Markets

IPO

Personal Finance

Tech

Jobs

Opinion

Features

Environment

Blogs ET NOW
News By Industry News By Company Economy Politics/Nation International Business SMB NRI
You are here: Home News International Business
Story Comments (3)
Read more on
The United Nations has warned that the world is on
the brink of another recession, projecting that global
economic growth will slow down further in 2012 and
even emerging powerhouses like India and China,
which led the recovery last time, will get bogged
down.

The UN 'World Economic Situation and Prospects
2012' report has cut the global growth forecast for
next year to 2.6 per cent from 4 per cent in 2010.

It has called 2012 a "make-or-break" year for the
global economy, which will face a "muddle-through"
scenario and continue to grow at a slow pace.

"Following two years of anaemic and uneven
recovery from the global financial crisis, the world
economy is teetering on the brink of another major
downturn," the UN report said, warning that "the risks
for a double-dip recession have heightened".

The report said the failure of policymakers, especially
those in Europe and the United States, to address
the jobs crisis, prevent sovereign debt distress and
escalation of financial sector fragility poses the most
acute risk for the global economy in 2012-2013.

Growth in developing countries like India and China, which had stoked the engine of the world economy so far,
will also slow down to 5.6 per cent in 2012 from 7.5 per cent in 2010.

"Developing countries are expected to be further affected by the economic woes in developed countries
through trade and financial channels," the report said.

GDP growth in China and India is expected to "remain robust, but to decelerate", it said.

India's economy is expected to expand by between 7.7 per cent and 7.9 per cent in 2012-2013, down from 9.0
per cent in 2010. In China, growth slowed from 10.4 per cent in 2010 to 9.3 per cent in 2011 and is projected to
slow further to below 9 per cent in 2012-2013.

Notably, the UN has revised its 2012 prediction downward for every major country.

It projected 1.3 per cent growth for the US (down 0.7 per cent from its last forecast), 1.5 per cent for Japan
(down 1.3 per cent), 0.5 per cent for the 27-nation European Union (down 0.8 per cent) and 8.7 per cent for
China (down 0.2 per cent).

A serious, renewed global downturn is looming because of persistent weaknesses in major developed
economies on account of problems left unresolved in the aftermath of the recession of 2008-2009, it said.

"Most developed country governments have indiscriminately switched from fiscal stimulus to premature
austerity measures. This has further weakened global aggregate demand, already nurtured by persistent high
unemployment," it said.
2 DEC, 2011, 11.08AM IST, PTI
World on brink of another economic meltdown and
recession: UN
Roubini Global Economics : www.roubini.com - Nouriel Roubini & RGE's Analysts Examine Critical Economic
Issues
Long Term Stock Picks : Equitymaster.com/Free_Stocks_Guide - Free Guide - How To Identify Long Term
Multibagger Stock Picks.
Ads by Google
united states | united nations | unemployment | Recession | global market | European
Union | Economic meltdown | Debt crisis
LATEST FROM ET LATEST FROM WEB
more
US again asks Pak to attend Bonn conference
Team Anna to chalk out strategy for protest
Pak court seeks information on Indian prisoner
SC notice to Varun Gandhi on alleged hate speech
To revive economy, rescue housing

Career Corner
Facebook, Microsoft, Google come
calling to IITs with fat pay packages
Microsoft, for the first time, had come to hire
IITians. Google picked engineers for both their
India and global offices.
At RPG teams work without supervision
IIT grad Arun Majumdar gets top US energy job
Govt yet to take call on VRS for BSNL, MTNL
Cos plan stock options to retain employees
Booming start to SRCC placements
MOST READ MOST COMMENTED MOST SHARED
In This Section | Entire Website
1 How euro zone crisis could affect the US econ...
2 Eurozone crisis: EU entering crucial 10 days ...
3 Europe faces 'true' financial crisis: Bank of...
4 Ratings firms like Moody's, S&P misread signs...
5 China cuts bank reserve ratio by 50 bps; worl...
More
RELATED ARTICLES
UN warns of possible new recession
UN cuts world growth forecast, IMF to follow
World recession looms: Nouriel Roubini, 'Dr Doom'
Oil price drops below $98 per barrel
World stocks gain amid signs of progress in Europe


Tweet


18
Share
4
Page 1 of 3 World on brink of another economic meltdown and recession: UN - The Economic Ti...
12/2/2011 http://economictimes.indiatimes.com/news/international-business/world-on-brink-of-an...

Additionally, the economic woes in Europe and the US are exacerbating volatility in international financial and
commodity markets and slowing growth in developing countries.

"All of these weaknesses are present and reinforce each other, but a further worsening of one of them could
set off a vicious circle leading to severe financial turmoil and a renewed global recession for 2012-2013," the
report said.

The report outlines several policy directions that could avoid a double-dip recession, including the optimal
design of fiscal policies to stimulate more direct job creation and investment in infrastructure, energy efficiency
and sustainable energy supply, stronger financial safety nets, better coordination between fiscal and monetary
policies, as well as providing sufficient support to developing countries for addressing the fallout from the crisis.

L I C - To Retire Rich : PensionPlans.PolicyBazaar.com - Get 1Lac p.m. After 55th BirthDay Compare 46 insurers
& Buy Today!
Dubai connections : www.vision.ae - Find out why Dubai is pivotal to the world economy
Ads by Google
Do you like this story? Post a Comment
Follow this topic
Economists forecast that employers added a net 125,000
jobs last month, an improvement from October's gain of
80,000.
PREVIOUS STORY
Slow economic growth likely
fueled modest November hiring:
Analysts
MIT-educated Giles Ong was hired in 2004 from Merrill
Lynch and was promoted to managing director in 2007.
NEXT STORY
Citigroup's Southeast Asia M&A
head Giles Ong leaves : Source
Log In/Connect with: More Login Options
Have something to say? Post your comment
Comments are moderated and will be allowed if they are about the topic and not abusive.
5 5
6 6
Your comment

Characters remaining (1500)

To post this comment you must log in.

or
Fill in your details:
Readers' opinions (3)
Post a Comment
Sort by: Newest | Oldest | Recommended (1) | Most Discussed | Agree | Disagree
kharardeer (Baroda)

If one eats too much for days, very soon either he falls sick or he becomes a pauper.
That is the case with USA or Europe. India eats very little, saves a lot and also
wastes much less. Things are likely to be better here, unless there is a political
instability, which is being created by some politicians. Politicians please do your jobs
of democratic norms. Let things be decided in parliament through debates, not
through hold ups.
Agree (1)
Disagree (0)
Recommend (1)
Offensive
sonia (india)

Yes, and in a situation such as this, the ruling party, in connivance with its corrupt
and greedy 'top businessmen' such as Unitech's Sanjay Chandra, is thrusting 100%
FDI in remaining sectors of the economy down everyone's throats. India will be
pushed over the brink, and corporate lobbyists in the government, media, judiciary
will then have nothing to lobby for.
Agree (3)
Disagree (1)
Recommend (0)
Offensive
Andrew Mohan Charles (Kerala)

Austerity is something I would like to see. Bicycles for my parliamentarians that is
what it should be.
Agree (8)
Disagree (0)
Recommend (3)
Offensive

Slide Shows 1 / 6
more
News In Pics 1 / 3
more
Check out the images of the
day
Los Angeles hit with powerful
Santa Ana winds
ET Mobile
Get Economic Times on the go. Get your
portfolio updates by the minute
Mumbai | Delhi | Bangalore | Kolkata
ET ePaper
Get a replica of your favourite edition of ET
and feel at home.
SHOP MOBILE 58888
more
Nokia BH503
76% Off on MRP
41% Off on Micromax Q55 Bling
67% Off on Card Reader
0% Off on Kaspersky Antivirus
For International Business news updates, follow ET on Twitter
Send Recommend 18 people recommend this.
Put your money where your
heart is
Make sure your expense is within
your means, but cutting corners will
steal joy from your life.
Page 2 of 3 World on brink of another economic meltdown and recession: UN - The Economic Ti...
12/2/2011 http://economictimes.indiatimes.com/news/international-business/world-on-brink-of-an...
gfedc
Post to Facebook
gfedc
Post to Twitter
3 + 5 =
Name Email
Will be displayed Will not be displayed

Location
Will be displayed

Share this Comment:

Please answer this simple math question.

Get a Quote
Type Company Name
Browse Companies
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | 1 2 3 4 5 6 7 8 9
Home | News | Markets | Personal Finance | Mutual Funds | Infotech | Jobs | Opinion | Features | Videos | My Portfolio
Other Times Group news sites
Times of India |
O|=||- c|O | Mumbai Mirror
Times Now | Indiatimes
|
Living and entertainment
Timescity | iDiva | Bollywood | Zoom

Networking
itimes | Dating & Chat | Email
Hot on the Web
World Aids Day 2011 | Christmas
2011
New Year 2012 | What is AIDS
Indiatimes Shopping | Desi Boyz
Songs
Services
Book print ads | Online shopping | Business solutions | Book domains | Web hosting
Business email | Free SMS | Free email | Website design | CRM | Tenders | Remit
Cheap air tickets | Matrimonial | Ringtones | Astrology | Jobs | Property | Buy car
Bikes in India | Online Deals
About us / Advertise with us / Careers @ TIL / Terms of use / Privacy Policy / Feedback / Sitemap / Code of Ethics Copyright 2011 Times Internet Limited. All rights reserved.


Page 3 of 3 World on brink of another economic meltdown and recession: UN - The Economic Ti...
12/2/2011 http://economictimes.indiatimes.com/news/international-business/world-on-brink-of-an...