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UN: 2012 is make-or-break year in world economy

Dec 1, 2011, 17:57 GMT

New York - The United Nations on Thursday revised its forecast of world economic growth, saying that, at best, world economic growth would reach 2.6 per cent in 2012, and 3.2 per cent in 2013.

'UN economists project that 2012 will be a make-or-break year in terms of proceeding with slow economic recovery or falling back into recession,' the UN said in its World Economic Situation and Prospects 2012.

It said the forecast for 2012 is conditioned, however, on 'containment of the eurozone debt crisis and a halt to further moves towards stringent fiscal austerity in developed countries.'

It said slower economic growth in rich countries will affect the situation in developing countries. It said the developing countries and economies in transition are expected to stoke the engine of the world economy, growing, on average, 5.4 per cent in 2012 and 5.8 per cent in 2013.

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