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UN lowers global economic growth forecasts for 2019-20

UNITED NATIONS, NEW YORK, UNITED STATES - 2018/07/09: Elliot Harris Assistant Secretary-General for economic development briefing to press before at United Nations Headquarters. (Photo by Lev Radin/Pacific Press/LightRocket via Getty Images)

The U.N. says it is lowering its forecasts for global economic growth in 2019 and 2020 as a result of high trade tensions, uncertainty over economic policies and softening business confidence.

In its mid-year report Tuesday on economic prospects, the U.N. said that following an expansion of 3 per cent in 2018, the world economy is now projected to grow 2.7 per cent in 2019 and 2.9 per cent in 2020. U.N. officials had projected 3 per cent growth for both years in its January forecast.

READ MORE: Canada’s economy slowed in the fourth quarter to deliver 1.8% growth for 2018

The new report says the growth outlook in all major developed countries and most developing regions has weakened due to both domestic and external factors.

U.N. chief economist Elliot Harris says that “more comprehensive and well-targeted policy responses are needed to tackle the current growth slowdown.”

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