UNCTAD warns of policy-induced global recession; inadequate financial support leaves developing countries exposed to cascading crises of debt, health and climate
The world is headed towards a global recession and prolonged stagnation unless we quickly change the current policy course of monetary and fiscal tightening in advanced economies.
Supply-side shocks, waning consumer and investor confidence, and the war in Ukraine have provoked a global slowdown and triggered inflationary pressures.
All regions will be affected, but alarm bells are ringing most for developing countries, many of which are edging closer to debt default. Climate stress is intensifying, with mounting loss and damage in vulnerable countries who lack the fiscal space to deal with disasters, let alone invest in their own long-term development.
THERE IS STILL TIME TO STEP BACK FROM THE EDGE OF RECESSION.
THE CURRENT COURSE OF ACTION IS HURTING THE MOST VULNERABLE. THIS IS A MATTER OF POLICY CHOICES AND POLITICAL WILL.