The World Economic Situation and Prospects 2013, published by the U.N. Department of Economic and Social Affairs, projected the global economy to grow 2.4 percent in 2013 and 3.2 percent in 2014, a downgrade from the U.N. forecast six months ago, the non-governmental organization said in a release issued from New York.
"This pace of growth will be far from sufficient to overcome the continued jobs crisis that many countries are still facing," the United Nations said. "With existing policies and growth trends, it may take at least another five years for Europe and the United States to make up for the job losses caused by the great recession of 2008-2009."
Economic woes in Europe, Japan and the United States affected developing countries, through weaker demand for their exports and a greater volatility in capital flows and commodity prices, the report said.
The report called for changing course in fiscal policy and shifting focus from short-term consolidation to more robust economic growth with medium- to long-term fiscal sustainability.
It recommended a globally coordinated refocusing of fiscal policies, aligned with policies that support job creation and green growth, and called for better global coordination of monetary policies and acceleration of financial regulatory reforms to stem exchange rate and capital flow volatility.