The United Nations Conference on Trade and Development (UNCTAD) warned that the world is heading towards a prolonged stagnation and depression, as a result of monetary policy movements in advanced economies.
In a report entitled “Trade and Development 2022” published on the official website of the United Nations yesterday, the conference explained that the rapid increases in interest rates and financial tightening in advanced economies, along with the crises caused by the Corona pandemic, and the Ukraine crisis have already transformed the global slowdown into deflation, with the downside unlikely. desired softness.
The report pointed out that during a decade of ultra-low interest rates, central banks have consistently failed to achieve inflation targets, and have also failed to generate healthier economic growth, adding: “Any belief that they can lower prices by relying on higher interest rates without this leads to To stagnate is an "unwise gamble".
The report expected that the global economy will grow by 2.5 percent in 2022, and that growth will slow in 2023 to 2.2 percent, indicating that the simultaneous slowdown hits all regions, but it rings an alarm bell for developing countries.
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