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In
its 2023 Trade and Development Report, the United Nations
Conference on Trade and Development (UNCTAD) said that growing
inequalities among countries were contributing to weak global
demand and limiting investment and growth.
"There is no clear driving force to propel the world economy
onto a robust and sustainable recovery track," it said.
In a statement accompanying the report, UNCTAD Secretary-General
Rebeca Grynspan said there was a need for a balanced policy mix
of fiscal, monetary and supply-side measures to achieve
financial sustainability and boost investment.
"Regulation needs to address the deepening asymmetries of the
international trading and financial system," she said.
UNCTAD said world economic growth was projected to slow from 3%
in 2022 to 2.4% this year, with few signs of a rebound in 2024.
To counter stalling growth, the report recommends that the
reduction of inequality be made a policy priority in developed
and developing countries. It said central banks should play a
stronger role in stabilizing the economy and that debt systems
should ensure reliable access to liquidity to achieve this
objective.
"In light of growing interdependencies in the global economy,
central bankers should assume a wider stabilizing function,
which would help balance the priorities of monetary stability
with long-term financial sustainability," the report said.
(Reporting by Gabrielle Tétrault-Farber; Editing by Toby Chopra)
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