UN forecasts modest economic recovery but no robust revival

Markets Associated Press

The United Nations is forecasting a modest economic recovery in 2017-18 but warns the projection is an indication of economic stabilization rather than a signal of robust revival.

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In its annual economic report released Tuesday, the U.N. said the world economy expanded by 2.2 percent in 2016, the slowest rate of growth since the 2009 recession.

It forecast growth of 2.7 percent this year and 2.9 percent in 2018, a slight downward revision from its mid-year predictions in May.

The U.N. report says: "Underpinning the sluggish global economy are the feeble pace of global investment, dwindling world trade growth, flagging productivity growth and heavy levels of debt."

It says low commodity prices have exacerbated these factors.

Assistant Secretary-General Lenni Montiel has urged redoubled efforts to promote stronger global economic growth.