UN warns of possible new recession

[December 02, 2011]  UNITED NATIONS (AP) -- The United Nations has sharply cut its economic projections for global growth and says that the world is at risk for a new recession.

The U.N.'s report on the World Economic Situation and Prospects 2012, released on Thursday, forecasts 2.6 percent growth next year in its main, relatively optimistic scenario -- and just 0.5 percent growth in its pessimistic scenario.

That's significantly below its May forecast that the global economy would grow 3.6 percent in 2012.

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

[Associated Press]

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.