United Nations, Dec 2 (ANI): The global economy is at a risk oI Iacing another major

downturn, a report has suggested.

The 2012 World Economic Situation and Prospects (WESP) report, which complied by UN
economists, said 2012 would be crucial in shaping the economic Iuture.
"The situation in the world is rather grim. We have a situation where we may well be at risk
oI a double dip. In any case, it is very likely that there will be Iurther slowdown," UN
Assistant Secretary-General Jomo Kwame Sundaram said.
The report predicted three possible scenarios Ior the global economy in Iuture: a baseline
projection, as well as optimistic and pessimistic projections.
It predicted that developing nations, expanding by 5.4 percent in 2012 and 5.8 percent in
2013, would be major drivers oI growth, Xinhua reports
These Iigures, however, indicate a slowdown Irom earlier growth Iigures.
The report also said high unemployment, particularly in developed countries, is adversely
aIIecting growth, and added Iiscal austerity measures that have been passed in response to
high public debt in developed countries were partly responsible Ior the cause.
The report said additional Iiscal stimulus could help counter the crisis.
"II there's no more Iiscal stimulus there's no other Iactor that will keep up the demand,
particularly in developed countries, " Sundaram said, adding that without stimulus,
unemployment may grow and economic growth may decrease, which would only make
national debt problems worse.
The report calls on countries to eIIectively coordinate their eIIorts to counter global economic
problems. (ANI)