New Delhi: The United Nations on Thursday warned that the global economic growth and trade will slow this year and the European crisis will cause "severe turmoil" on markets globally.

The analysts lowered forecasts for the global economic growth rate to 2.5 percent this year and 3.1 percent in 2013. Last year, the global economy witnessed a growth rate of 2.7 percent.

According to the reports, job creation had exceeded expectations and consumer spending had increased markedly. World trade growth will slow to 4.1 percent this year, down from 13.1 percent in 2010 and 6.6 percent in 2011, it estimated. The global jobs crisis was worsening, particularly in the Euro zone.

Report also claimed, Employment-to-population ratios remain below their 2007 levels in all major economies, except Brazil, China and Germany." The unemployment rate in the 16-country euro area increased to a historic high of 10.9 percent in March, up one percentage point from a year ago.

By contrast, post-crisis employment rebounded more strongly in developing countries, especially in East Asia and Latin America.

The UN report called for an internationally coordinated change of course "from short-term consolidation to robust economic growth with medium- to long-term fiscal sustainability".


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