Global crisis is not over, warned UNCTAD

The UN Conference on Trade and Development (UNCTAD), in its annual report, warned that given that insufficient global demand, financial fragility and growing inequality, “the global crisis is not over, and the risk of a prolonged stagnation persists.” Reaching nearly $200 trillion, the ever-growing world’s debt is primary reason for such risk as it is becoming more and more unsustainable, the UNCTAD underlined.

“The key message that we want to convey is how to ensure that we’re not building a house of cards for an international monetary and financial system for the future,” Steve MacFeely, an UNCTAD information official told the press. In brief, global economy needs fairer and more efficient sovereign debt workout mechanism. Developed and developing countries will grow at about 1.9% and 4% in 2015 respectively, that is a 14th consecutive year of economic slowdown for the latters.