World Economic Situation and Prospects 2014

Prospects for global macroeconomic development

• Global growth underperformed in 2013, but is expected to improve in 2014-2015

• Inflation outlook remains benign

• High unemployment remains a key challenge

International trade and financing for development

• Moderate rise in trade growth is anticipated along with flattening commodity prices

• Multilateral trade negotiations reach limited agreement while regional trade agreements boom

• Volatility of capital inflows and risk premium to emerging economies have increased

• Long-term financing is essential for promoting sustainable development

Uncertainties and risks

• A bumpy exit of quantitative easing measures poses significant risks for the world economy

Policy challenges

• The globally concerted policy actions should be focused on a stronger recovery

• International policy cooperation should ensure that sufficient resources are made available to least developed countries