“There are many warning lights flashing, and the orange of some of them will almost certainly turn red in the coming year with very unpredictable consequences,” warned Richard Kozul-Wright, head of globalization and warning strategy. development at the United Nations Conference on Trade and Development (UNCTAD).

“Growth is still fragile, uncertainty remains large and risks continue to emerge. “We have not been able to erase the legacy of the 2008-2009 financial crisis,” he added.

More than 700 million people live below the extreme poverty line

The report specifically refers to the situation in Africa, which requires more economic growth to lift people out of poverty. More than 700 million people live below the extreme poverty line, defined as $1.90 (CZK 42.80) per day at 2011 purchasing power parity, and half of them are in Sub-Saharan Africa.

In Africa, according to the report, economic growth must increase to double digits if the goal of poverty alleviation is to be achieved. This figure is much higher than the growth rate recorded in the last 50 years.

Although the short-term picture of the global economy appears satisfactory, a number of risks have emerged in recent months, Kozul-Wright said. This includes the end of the “hyperactivity” of the United States economy due to President Donald Trump's tax reforms, slowing economic growth in Germany and China, the UK's exit from the European Union, and also the fact that a decade after the financial crisis, the world economy is still burdened by debt.