Economy in 2010 – (2)

December 15, 2009

This is the analysis from United Nation for world economic situation and prospects in 2010. Here are the main messages:

1.  We’re moving away from the abyss.

  • Stabilization in financial markets.
  • Rebound in international trade and commodity prices.

2.  Incipient, but fragile global recovery

  • Mild, yet fragile recovery of world economy.
  • Uneven recovery (led by developing Asia).

3.  Downside risks: moving back to the abyss

  • Premature withdrawal fiscal stimulus would lead to double-dip recession.
  • Business-as-usual recovery will lead to widening global imbalances and risks hard landing US Dollar.

4.  Policy Challenges

  • Sustainable rebalancing of global economy requires further international cooperation and reforms financial architecture.

Source: http://www.un.org/esa/policy