17 December 2012: The UN Department of Economic and Social Affairs (DESA) launched the first chapter of the World Economic Situation and Prospects (WESP) 2013, “The Global Economic Outlook.” The report recommends policy actions to strengthen growth and create jobs, and cautions that declining economic growth and development assistance could hinder achievement of the Millennium Development Goals (MDGs), particularly in the poorest nations.

African economies are predicted to experience a slight decrease in output growth, from 5% in 2012 to 4.8% in 2013, according to WESP. Africa’s economic growth will continue to be driven by expanding economic ties with Asia, fiscal spending on infrastructure projects and oil-exporting countries. Income per capita is anticipated to continue to grow, although not at a sufficient pace to accelerate poverty reduction. The report highlights challenges in Africa that threaten economic growth, including armed conflict and inflation rates above 10% in countries such as Angola and Nigeria.

The report identifies weaknesses in major developed countries as the core challenge in the global economic slowdown. It calls for international coordination to reorient fiscal policies and align with structural policies that support green growth and job creation, noting the success of the Republic of Korea in stimulating the economy through energy-saving initiatives and green infrastructure investment.

WESP also notes that the economic slowdown has resulted in slower achievement of the MDGs, including on poverty reduction and sustainable development, and recommends securing development assistance to help the poorest nations accelerate progress on the MDGs.

DESA, the UN Conference for Trade and Development (UNCTAD) and the five UN regional commissions, including the UN Economic Commission for Africa (UNECA), produce the WESP on an annual basis. [DESA Press Release, 17 December] [DESA Press Release, 18 December] [Publication: World Economic Situation and Prospects 2013: Global outlook]