Trade and Development Report 2022: Major Highlights
- Growth Outlook:
- According to Trade and Development Report world economic growth will slow to 2.5 per cent in 2022 and drop to 2.2 per cent in 2023.
- The global slowdown will affect all economies. But developing countries are exposed most to the cascade of debt, health and climate crises.
- Middle-income countries in Latin America and low-income countries in Africa could suffer some of the sharpest slowdowns this year.
- Debt Crisis:
- With 60 per cent of low-income countries and 30 per cent of emerging market economies in or near debt distress, UNCTAD warns of a possible global debt crisis.
- And climate shocks are heightening the risk of economic instability in indebted developing countries.
- Hiking Interest Rates:
- Interest rate hikes in advanced economies are hitting the most vulnerable hardest.
- Some 90 developing countries have seen their currencies weaken against the dollar this year – over a third of them by more than 10 per cent. A stronger dollar worsens the situation by raising import prices in developing countries.
- High Inflation levels:
- Major reasons cited by the Trade and Development Report for the global downturn:
Trade and Development Report: Recommendations
- UNCTAD calls for course correction and multilateral synchronization of monetary and fiscal policies, a substantial debt-reduction programme for developing and low-income countries, and a massive increase in official development assistance.
- UNCTAD has called for advanced economies to avoid austerity measures and international organizations to reform the multilateral architecture to give developing countries a fairer say.
- Growth outlook:
- India’s economic growth is expected to decline to 5.7 per cent this year from 8.2 per cent in 2021.
- The country’s growth will further drop to 4.7% in 2023.
- Reasons cited by the report for lowering India’s growth projections
About United Nations Conference on Trade and Development (UNCTAD)
- It was established in 1964 to promote trade, investment, and development in developing countries.
- It is a permanent organ of the United Nations (UN) General Assembly.
- Headquarters: Geneva, Switzerland.
- The highest policy-making body of UNCTAD is the Conference, which meets once every four years to set policy guidelines and to formulate a program of work.
- Important publications:
- Trade and Development Report
- World Investment Report
- The Least Developed Countries Report.