Trade and Development Report 2022: Global and Indian Economic Outlook

Trade and Development Report 2022: Major Highlights

Global Scenario

• 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.

Indian Scenario

• 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.

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