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The UN Conference on Trade and Development (UNCTAD) released its Trade and Development Report 2016 earlier on Thursday. UNCTAD said that the world economy in 2016 is in a "fragile state,” and added that “Neither financial bubbles nor export surges offer a sustainable solution to tepid growth and weak labour market conditions.”
UNCTAD said that there was lack of policy coordination among systemically important economies. The agency called for a more ambitious policy package to address existing imbalances and ease the constraints on faster growth.
The UNCTAD report follows a modest downgrade by the Organization for Economic Co-operation and Development (OECD) to global growth forecasts on Wednesday. OECD trimmed global GDP growth forecast for 2016 to 2.9 percent from previous 3.0 percent. 2017 GDP growth forecast was cut to 3.2 percent from previous 3.3 percent.
