UN: China, India, developing nations drive global economic upswing

May 25, 2011, 16:32 GMT

New York - Emerging economies in Asia and Latin America are leading the drive in global economic recovery, the UN said Wednesday in a mid-year report on the world economic situation.

China, India and Brazil are among developing countries exhibiting strong output growth while developed countries' economic recovery has been weaker.

The UN economic report said the world gross output is expected to grow by 3.3 per cent in 2011 and 3.6 per cent in 2012.

UN economic experts said the global economy continues to 'recover from the global economic crisis, but the pace remains uneven across countries.'

They said fiscal policies in rich countries are shifting toward austerity in reaction to concerns about the sustainability of public debt levels, which in turn will weaken short-term growth prospects.

While developing countries are leading the recovery, their growth outlook is 'moderating' because of concerns over persisting rising inflation and rising exchange rates that are caused by large capital inflows.

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