This United Nations (UN) is seriously concerned about its effects. rise interest rates encouraged by central banks in their struggle opposite inflation. Fearful of the economic recovery in general and its negative consequences on the most vulnerable countries in particular, he urges central banks to “reassess and recalibrate their monetary policy instruments” and “reconsider some”. inflation targets Too rigid to improve price stability while supporting full employment and economic growth”.
Among the changes proposed by the body led by António Guterres, it is proposed to raise the current rate. 2% inflation target It directs developed countries’ monetary policy to “3% or 4%” to “leave more room to stimulate employment and growth in difficult times”. Another possibility he points to is “targeting, for example, a range between 2 percent and 3.5 percent, or focusing on the price level rather than the annual inflation rate”. A less demanding inflation target would allow central banks to moderate the rise in interest rates and “aggressive monetary contraction policy”.
“Central banks need maximum flexibility to stabilize their long-term inflation expectations,” said the ‘Status and prospects for the world economy’ report, published this Wednesday by the New York-based multilateral agency, which includes 2023 growth forecasts for the world economy. The main economic areas and Spain were also revised downwards.
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The report lowers its global growth forecast for 2023 to 1.9%, compared to the 3.1% forecast in May 2022. International Monetary Fund (IMF) has announced that it will slightly correct its current global growth forecast of 2.7% next week.
The UN report also lowered its growth forecast for the eurozone to 0.1% in 2023 (vs. 2.3% in May) and lowered its growth forecast for the US (0.4% compared to the previous 1.8%). For Spain, the UN projects growth of 4.5% in 2022 and 0.9% in 2023, then below the 5.2% and 3% predicted in January 2022 before the outbreak of war in Ukraine.
At a time when the UN is currently starting to adjust its economic forecasts downwards. upside fixes In other work bodies and services, at least two factors contribute. The agency’s previous projections (January or May 2022) are older than those of other organizations (IMF, OECD, AT), and this could have prevented the generalized outlook from worsening in the second half of 2022. Some of the data on which UN projections are based are based on some of the latest indicators that support a certain improvement in economic prospects.
Source: Informacion
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