UN report predicts modest global economic growth for next two years

The world economy is projected to grow by 2.9 percent in 2016 and 3.2 percent in 2017, said a UN report here Thursday, attributing the modest economic growth to a number of cyclical and structural headwinds.

The World Economic Situation and Prospects 2016 report, with its first chapter unveiled, said the world economy stumbled in 2015 and that the global growth is estimated at a mere 2.4 percent this year.

Amid lower commodity prices, large capital outflows and increased financial market volatility, growth in developing and transition economies have slowed to its weakest pace since the global financial crisis, according to the report.

Stagnant investment growth and growing disconnect between finance and real sector activities also impede the world economy from growing, it added.

"Stronger and more coordinated policy efforts are needed to ensure robust, inclusive and sustainable economic growth, which will be a key determinant for achieving the 2030 Sustainable Development Goals," said Lenni Montiel, assistant secretary-general of the United Nations Department of Economic and Social Affairs.

According to the report, growth in developed economies will gain some momentum in 2016, while economic growth in developing and transition economies is expected to bottom out and gradually recover.

"Developing countries are expected to grow by 4.3 percent and 4.8 percent in 2016 and 2017, respectively," it said.

The full report will be available in January 2016. Enditem