The 2020 World Economic Situation Report (WESP) says the economic growth rate for 2019 is the lowest for recent 10 years. According to the report, in 2019 the world economy was on the verge of stagnation: real growth was only 2.3 percent, and this is the lowest figure in the last ten years.
The authors of the report note that climate change is a serious threat to economic development around the world and the welfare of the population as a whole. They urge politicians to resolve trade disagreements and move more actively to renewable energy sources. The development prospects for 2020 are not very encouraging either - this year the world economy’s growth rates will probably rise to 2.5 percent. However, the prospect of even such a minimal recovery is still in question.
Experts fear that the aggravation of tension in trade relations, financial turmoil or the escalation of geopolitical tension may disrupt the process of economic recovery. Under an unfavorable scenario, global growth this year may even slow down to just 1.8 percent.
In this situation, economists advise politicians not only to create favorable conditions for GDP growth, but also strive to increase the welfare of all sectors of society. For this, in their opinion, it is necessary to invest more in projects in the field of sustainable development and the use of renewable energy sources.
UN Chief Economist and Assistant Secretary General for Economic Development Elliot Harris emphasizes the urgent need for a transition to a new energy supply system. Many states still make short-sighted decisions: they increase investments in oil and gas exploration and energy production at coal-fired power plants.
This, according to economists, is not only fraught with unexpected shocks and losses, but also creates serious obstacles to achieving environmental goals. Today, the energy sector accounts for about three quarters of global greenhouse gas emissions. If per capita emissions in developing countries increase to the levels recorded in developed countries, the total global carbon emissions will increase by more than 250 percent, while the global goal is to achieve zero emissions by 2050. This means that the produced volume of emissions should not exceed that absorbed by nature.
The authors of the report call not to delay the transition to a new energy supply system. They are confident that increasing the share of clean energy will not only have a positive impact on the environment and human health, but will also create new economic opportunities for many countries.
14:38 January 21, 2020