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Mid-year economic update: Not out of the woods yet

Risks could still derail the world economy

Despite improved global financial conditions and reduced short-term risks, the world economy continues to expand at a subdued pace. According to the mid-year update of the UN’s report “World Economic Situation and Prospects” (WESP), global economic activity is projected to slowly gain momentum, but growth will continue to be below potential and employment gains will remain weak. Rainer Falk summarizes the results.


The report (see reference) notes that since late 2012, new policy initiatives in major developed economies have reduced systemic risks and helped stabilize consumer, business and investor confidence, but with very limited improvement on economic growth ...

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Find in this article:

Feeble recovery
Ongoing weaknesses in developed economies
The outlook for the euro zone
Rising capital flows to emerging economies - looming risks
Jobs not being created fast enough

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