World Economic Situation and Prospects 2008

United Nations

According to World Economic Situation and Prospects 2008 (WESP 2008), the global economy faced significant challenges in sustaining the strong economic growth achieved over the preceding years. The report forecast a moderation in world economic growth in 2008 and highlighted several downside risks, including the bursting of the United States housing bubble, the unfolding credit crisis, the decline of the US dollar, global economic imbalances and high oil prices.

The report draws lessons from the global financial turmoil of 2007, triggered by the collapse of the US sub-prime mortgage market. It observes that measures adopted by central banks in major economies did not address the underlying causes of the crisis, particularly the substantial global imbalances.

An alternative scenario considers the possibility of a sharper decline in US house prices and a hard landing of the US dollar. Under this scenario, the United States could enter a recession, resulting in significantly lower global economic growth than projected in the baseline forecast.

In addition to examining international trade and capital flows, the report discusses developments and policy issues concerning international trade negotiations and reform of the international financial system.

Key Features

• Examines global economic prospects and growth forecasts for 2008.

• Analyses risks arising from the US housing market downturn, credit crisis, dollar depreciation, global imbalances and high oil prices.

• Draws lessons from the 2007 global financial turmoil and examines the policy responses of major central banks.

• Covers international merchandise and services trade, commodity markets and trade policy developments.

• Examines financial flows to developing and transition economies, including foreign direct investment and development assistance.

• Discusses international financial cooperation, debt relief and reform of the global financial architecture.

• Presents regional economic developments and outlooks for developed, transition and developing economies.

Product Details

• Author/Organisation: United Nations

• Publisher: Academic Foundation

• Publication Year: 2008

• Language: English

• Format: Paperback

• Pages: 192

• ISBN-13: 9788171886920