UN lowers global economic growth estimate as modest pace continues; Latin America worsens

EnergyAssociated Press

The United Nations is lowering its growth estimate for the global economy this year, saying its previous forecast of 3.1 percent growth in 2015 is now more likely to be 2.8 percent instead.

The World Economic Situation and Prospects mid-year report released Tuesday says the dip reflects a worsening in Latin America in particular as the region deals with lower commodity prices.

Continue Reading Below

Overall, the forecast expects modest global growth the rest of this year and next year, which could see an improvement to 3.1 percent.

The new report sees strength in East and South Asia but finds Africa split strongly between its oil-exporting and oil-importing countries.

The report also sees India's growth surpassing China's both this year and next.

Developing countries' average growth is seen as staying at 4.4 percent.