KUALA LUMPUR (Jan 26): Global output growth is projected to decelerate from an estimated 3.0% in 2022 to 1.9% in 2023, marking one of the lowest growth rates in recent decades, against the backdrop of the Covid-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency.

The United Nations in its World Economic Situation and Prospects 2023 presented a gloomy and uncertain economic outlook for the near term.

It said global growth is forecast to moderately pick up to 2.7% in 2024, as some of the headwinds will begin to subside.

However, the agency said this is highly dependent on the pace and sequence of further monetary tightening, the course and consequences of the war in Ukraine, and the possibility of further supply-chain disruptions.

United Nations secretary general António Guterres said: "This is not the time for short-term thinking or knee-jerk fiscal austerity that exacerbates inequality, increases suffering, and could put the Sustainable Development Goals (SDGs) farther out of reach.

“This action includes a transformative SDG stimulus package, generated through the collective and concerted efforts of all stakeholders,” he said.