{"id":1671362,"date":"2022-10-04T07:53:09","date_gmt":"2022-10-04T11:53:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1671362"},"modified":"2022-10-04T07:53:22","modified_gmt":"2022-10-04T11:53:22","slug":"un-world-on-verge-of-recession","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/un-world-on-verge-of-recession\/","title":{"rendered":"UN: World on Verge of Recession"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fun-world-on-verge-of-recession%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1671362&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Monetary and fiscal policies in advanced economies \u2014 including continued interest rate hikes \u2014 could push the world toward a global recession and stagnation, the UN Conference on Trade and Development (UNCTAD) said on Monday.<\/li>\n<li>A global slowdown could potentially inflict worse damage than the financial crisis in 2008 and the Covid-19 shock in 2020, warned the UNCTAD in its\u00a0Trade and Development Report 2022.<\/li>\n<li>&#8220;We still have time to step back from the edge of recession. Nothing is inevitable. We must change course,&#8221; said UNCTAD Secretary-General Rebeca Grynspan.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107092564\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">East and southeast Asia are set to post growth rates below those in the five years prior to the pandemic.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Kiyoshi Ota | Bloomberg | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><a href=\"https:\/\/news.un.org\/en\/story\/2022\/10\/1129142\" target=\"_blank\" rel=\"noopener\">The United Nations has sounded off a warning<\/a> that the world is &#8220;on the edge of a recession&#8221; and developing nations like those in Asia could bear the brunt of it.<\/p>\n<p>Monetary and fiscal policies in advanced economies \u2014 including continued interest rate hikes \u2014 could push the world toward a global recession and stagnation, the UN Conference on Trade and Development (UNCTAD) said on Monday.<\/p>\n<p>A global slowdown could potentially inflict worse damage than the financial crisis in 2008 and the Covid-19 shock in 2020, warned the UNCTAD in its\u00a0<a href=\"https:\/\/unctad.org\/tdr2022\" target=\"_blank\" rel=\"noopener\">Trade and Development Report 2022<\/a>.<\/p>\n<p>&#8220;All regions will be affected, but\u00a0alarm bells are ringing most for developing countries, many of which are edging closer to debt default,&#8221; the report said.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\">\n<div>\n<div class=\"Pullquote-quote\">We still have time to step back from the edge of recession. Nothing is inevitable. We must change course.<\/div>\n<div class=\"Pullquote-sourceWrapper\">\n<div class=\"Pullquote-source\">Rebeca Grynspan<\/div>\n<div class=\"Pullquote-info\">Secretary-General of UNCTAD<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>Asian and global economies are headed for a recession if central banks continue raising interest rates without also using other tools and looking at supply-side economics, the UNCTAD said adding that a desired soft landing would be unlikely.<\/p>\n<p>&#8220;Today we need to warn that we may be on the edge of a policy-induced global recession,&#8221; <a href=\"https:\/\/unctad.org\/osgstatement\/launch-trade-and-development-report-2022\" target=\"_blank\" rel=\"noopener\">Secretary-General of UNCTAD Rebeca Grynspan said in a statement.<\/a><\/p>\n<p>&#8220;We still have time to step back from the edge of recession. Nothing is inevitable. We must change course.&#8221;<\/p>\n<p>&#8220;We call then for a more pragmatic policy mix that deploys strategic price controls, windfall taxes, anti-trust measures and tighter regulations on commodity speculation. I repeat, a more pragmatic policy mix &#8230; we also need to make greater efforts to end commodity price speculation.&#8221;<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Impact on Asia<\/h2>\n<div class=\"group\">\n<p>The prognosis is grim across the region, according to the UNCTAD report.<\/p>\n<p>This year&#8217;s interest rate hikes in the U.S. will cut an estimated\u00a0$360 billion\u00a0of future income for developing nations excluding China, while net capital flows to developing countries have turned negative.<\/p>\n<p>&#8220;On net, developing countries are now financing developed ones,&#8221; the report said.<\/p>\n<p>&#8220;Interest rate hikes by advanced economies\u00a0are hitting the most vulnerable hardest.\u00a0Some 90 developing countries have seen their currencies weaken against the dollar this year.&#8221;<\/p>\n<p>East and Southeast Asia are set to post growth rates below those in the five years prior to the pandemic. UNCTAD expects East Asia to grow at 3.3% this year, compared to 6.5% last year.<\/p>\n<p>Expensive imports and a softening in global demand for exports as well as China&#8217;s slowdown will also add further pressure on that part of the region, the report said.<\/p>\n<\/div>\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107121735\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000264474\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\">\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Debt distress is growing in South Asia and western Asia. Sri Lanka has fallen into sovereign default, Afghanistan remains in debt distress, and Turkey and Pakistan face rising bond yields.<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2022\/09\/06\/pakistan-finmin-on-floods-country-is-bearing-brunt-of-climate-change.html\">Pakistan is reeling from the floods<\/a>, and is already suffering mounting debt and falling foreign reserves.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\">\n<div>\n<div class=\"Pullquote-quote\">Focusing solely on a monetary policy approach \u2014 without addressing supply-side issues in trade, energy and food markets \u2014 to the cost-of-living crisis may indeed exacerbate it.<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>A new note by Capital Economics on Tuesday echoed the UNCTAD findings.<\/p>\n<p>It said the latest global manufacturing Purchasing Managers&#8217; Index \u2014 which measures industrial activity\u00a0\u2014 indicated global industries &#8220;have weakened significantly and are set to perform worse in the coming months as high inflation and rising interest rates take their toll.&#8221;<\/p>\n<p>The silver lining is that this spare capacity will alleviate global shortages and bear down on price pressures, Simon MacAdam, Capital&#8217;s senior global economist, said.<\/p>\n<p>This situation is a result of the rush to fix interest rates after years of ultra-low rates with global policy makers failing to lift inflation in that time or to generate healthier economic growth, the UNCTAD added.<\/p>\n<p>&#8220;Focusing solely on a monetary policy approach \u2014 without addressing supply-side issues in trade, energy and food markets \u2014 to the cost-of-living crisis may indeed exacerbate it,&#8221; the UNCTAD said.<\/p>\n<p>&#8220;Under current supply-chain challenges and rising uncertainty, where monetary policy alone cannot safely lower inflation, pragmatism will need to replace ideological conformity in guiding the next policy moves.&#8221;<\/p>\n<p>The UNCTAD suggested that countries look at overdue wage increases and continue to create jobs.<\/p>\n<p>There should also be more public investment in economic and social infrastructure to boost employment, raise productivity, improve energy efficiency and reduce greenhouse-gas emissions.<\/p>\n<p>Governments should consider tax reforms, including more wealth and windfall taxes, a reduction of regressive tax cuts and loopholes and the clamping down of tax havens by firms and high-wealth individuals, the report said.<\/p>\n<\/div>\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-106910729\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000200099\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/106910742-1626269712985-GettyImages-84421445.jpg\" alt=\"What is a recession, and can you predict one is going to happen?\" \/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/4db8932b7ac3e84e3f64.svg\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Monetary and fiscal policies in advanced economies \u2014 including continued interest rate hikes \u2014 could push the world toward a<\/p>\n","protected":false},"author":1,"featured_media":1671367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1671362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1671362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1671362"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1671362\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1671367"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1671362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1671362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1671362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}