Message: UN Warns of Threat to World Economy
UN Warns of Threat to World Economy
By Harvey Morris at the United Nations
Published: January 9 2008 22:00
(excerpt)
There is a “clear and present danger” of the global economy slowing to near stand-still in 2008 because of a looming recession in the US, the United Nations said on Wednesday.
"The darkening clouds of downside risk are looming much larger than a year ago” and also offered a more pessimistic scenario in which a deep housing slump in the US would lead to a hard landing for the dollar and an outright recession. The impact of lower US imports could then cause world economic growth to plummet to as low as 1.6 per cent.
The UN called on governments to take joint action to avoid a possible “steep and abrupt” decline in the value of the US currency, calling for multilateral agreement on a realignment of exchange rates.
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