Connect with us

News

UN Report: 2024 Could Errand Protracted Period of Low Growth

Published

on

UN Report: 2024 Could Errand Protracted Period of Low Growth

By: Michael Mike

A United Nations flagship economic report has raised an alarm that protracted period of low growth looms large, and could undermine progress on sustainable development.

According to the report released on Friday, weakening global trade, high borrowing costs, elevated public debt, persistently low investment, and mounting geopolitical tensions put global growth at risk.

The global economic growth is projected to slow from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024, trending below the pre-pandemic growth rate of 3.0 per cent, according to the United Nations World Economic Situation and Prospects (WESP) 2024, launched on Friday.

This latest forecast comes on the heels of global economic performance exceeding expectations in 2023. However, last year’s stronger-than-expected GDP growth masked short-term risks and structural vulnerabilities, according to the report.

The UN’s flagship economic report presents a sombre economic outlook for the near term. Persistently high interest rates, further escalation of conflicts, sluggish international trade, and increasing climate disasters, pose significant challenges to global growth.

The report stated that the prospects of a prolonged period of tighter credit conditions and higher borrowing costs present strong headwinds for a world economy saddled with debt, while in need of more investments to resuscitate growth, fight climate change and accelerate progress towards the Sustainable Development Goals (SDGs).

Reacting to the report, the United Nations Secretary- General, António Guterres, said: “2024 must be the year when we break out of this quagmire. By unlocking big, bold investments we can drive sustainable development and climate action, and put the global economy on a stronger growth path for all,” adding that:
“We must build on the progress made in the past year towards an SDG Stimulus of at least $500 billion per year in affordable long-term financing for investments in sustainable development and climate action.”

The report stated that growth in several large, developed economies, especially the United States, is projected to decelerate in 2024 given high interest rates, slowing consumer spending and weaker labour markets. The short-term growth prospects for many developing countries – particularly in East Asia, Western Asia and Latin America and the Caribbean – are also deteriorating because of tighter financial conditions, shrinking fiscal space and sluggish external demand.

Low-income and vulnerable economies are facing increasing balance-of-payments pressures and debt sustainability risks. Economic prospects for small island developing States, in particular, will be constrained by heavy debt burdens, high interest rates and increasing climate-related vulnerabilities, which threaten to undermine, and in some cases, even reverse gains made on the SDGs, according to the report.

The report further showed that global inflation is projected to decline further, from an estimated 5.7 per cent in 2023 to 3.9 per cent in 2024. Price pressures are, however, still elevated in many countries and any further escalation of geopolitical conflicts risks renewed increases in inflation.

In about a quarter of all developing countries, annual inflation is projected to exceed 10 per cent in 2024, the report highlighted, showing that since January 2021, consumer prices in developing economies have increased by a cumulative 21.1 per cent, significantly eroding the economic gains made following the COVID-19 recovery. Amid supply-side disruptions, conflicts and extreme weather events, local food price inflation remained high in many developing economies, disproportionately affecting the poorest households.

“Persistently high inflation has further set back progress in poverty eradication, with especially severe impacts in the least developed countries,” said United Nations Under- Secretary-General for Economic and Social Affairs, Li Junhua,.

He said: “It is absolutely imperative that we strengthen global cooperation and the multilateral trading system, reform development finance, address debt challenges and scale up climate financing to help vulnerable countries accelerate towards a path of sustainable and inclusive growth.”

According to the report, the global labour markets have seen an uneven recovery from the pandemic crisis. In developed economies, labour markets have remained resilient despite a slowdown in growth. However, in many developing countries, particularly in Western Asia and Africa, key employment indicators, including unemployment rates, are yet to return to pre- pandemic levels. The global gender employment gap remains high, and gender pay gaps not only persist but have even widened in some occupations.
Stronger international cooperation needed to stimulate growth and promote green transition.

It advised that Governments will need to avoid self-defeating fiscal consolidations and expand fiscal support to stimulate growth at a time when global monetary conditions will remain tight, adding that Central banks around the world continue to face difficult trade-offs in striking a balance between inflation, growth and financial stability objectives. Developing country central banks, in particular, will need to deploy a broad range of macroeconomic and macroprudential policy tools to minimize the adverse spillover effects of monetary tightening in developed economies.

Furthermore, the report emphasized that robust and effective global cooperation initiatives are urgently needed to avoid debt crises and provide adequate financing to developing countries. Low-income countries and middle-income countries with vulnerable fiscal situations need debt relief and debt restructuring to avoid a protracted cycle of weak investment, slow growth and high debt-servicing burdens.

It added that in addition, global climate finance must be massively scaled up. Reducing – and eventually eliminating – fossil fuel subsidies, following through on international financing commitments, such as the $100 billion pledge to support developing countries, and promoting technology transfer are critical for strengthening climate action worldwide. It also underscores the ever- increasing role of industrial policies to bolster innovation and productive capacity, build resilience and accelerate a green transition.

UN Report: 2024 Could Errand Protracted Period of Low Growth

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Zulum Rolls Out 20 Electric Buses to Cushion Petrol Price Hike

Published

on

Zulum Rolls Out 20 Electric Buses to Cushion Petrol Price Hike

By: Our Reporter

Borno State Governor, Professor Babagana Umara Zulum, has directed the immediate deployment of 20 luxury electric buses for public use as part of measures to cushion the impact of the recent petrol price hike on residents.

The buses, which were inaugurated by President Bola Ahmed Tinubu on 20th December, 2025, alongside 3,000 electric bicycles, 500 electric tricycles, and 100 electric vehicles aimed at improving transportation services across the state.

The rollout of the buses, which commenced on Friday, 3rd April, features a fleet of 17 buses with 49 seating capacity, two 37-seaters, and one 28-seater. They are currently being deployed across major routes within Maiduguri metropolis and its environs to ease the burden of rising transport costs on commuters.

The Fully air-conditioned and energy-efficient vehicles can cover over 400 kilometres on a single charge. This initiative complements the existing fleet of buses and salon cars earlier procured by the Zulum administration to enhance urban mobility.

To ensure seamless operations, the governor has also established the largest electric vehicle charging terminal in the country, with the capacity to charge up to 50 vehicles at a time.

To further protect residents from the ripple effects of the global energy crisis, Governor Zulum directed Borno Express Transport Service to maintain a subsidised fare of N50 per drop.

The intervention has already begun to yield positive results, with noticeable reductions in congestion and improved access to affordable transportation for students, civil servants, traders, and other residents.

Commuters have since commended the initiative, describing it as timely and impactful.

“This transport initiative is indeed commendable. We are not feeling the impact of the rising transportation costs, as fares remain at N50 per drop. We thank Governor Zulum for the gesture”.

The initiative forms part of Governor Zulum’s effort to promote green energy, modernise transportation system and provide relief to the vulnerable.

Zulum Rolls Out 20 Electric Buses to Cushion Petrol Price Hike

Continue Reading

News

Youth Exclusion Could Derail Development Goals, UN Issues Urgent Warning

Published

on

Youth Exclusion Could Derail Development Goals, UN Issues Urgent Warning

By: Michael Mike

A senior United Nations official has issued a strong warning that governments and institutions risk deepening instability and policy failure if they continue to sideline young people, insisting that meaningful youth inclusion is now a critical condition for peace, stability, and sustainable development.

Speaking in Abuja at an interactive session with youth, the United Nations Assistant Secretary General for Youth Affairs and Head of UN Youth Affairs, who is currently on an official visit to Nigeria, Mr. Felipe Paullier, said global institutions are failing to evolve at the pace required to match today’s rapidly changing realities, particularly the demographic shift driven by an unprecedented youth population.

The event, themed “Open-Door Youth Engagement,” convened youth-led organizations, young women’s groups, youth peacebuilders, innovators, students, young professionals, persons with disabilities, and underserved youth communities for an interactive dialogue with representatives of the Government and the United Nations.

According to Paullier, young people now represent the largest, most educated, and most interconnected generation in history, especially in developing countries like Nigeria. However, this demographic advantage is being undermined by persistent gaps in access to quality education and limited opportunities for meaningful participation in governance.

He noted that: “Engaging young people in policy is not just an option—it is a condition if we want to achieve peace, stability, and effective solutions.”

He said the UN acknowledged a growing disconnect between policy formulation and real-world impact, describing the process of closing this gap as complex but urgent.

He admitted that while global frameworks exist, including the United Nations Sustainable Development Goals (SDGs) and youth-focused strategies, implementation at the national level remains inconsistent.

LHe emphasized that governments must move beyond rhetoric and adopt clear, actionable commitments that integrate youth voices into decision-making processes.

He said central to this effort is the UN’s broader development roadmap, which includes commitments to embed youth participation not only at global levels but also within country-level governance and policy execution.

Addressing concerns over the sustainability of policies, he warned that many initiatives fail because they are not designed to endure or adapt over time. The solution, the official argued, lies in institutionalizing youth engagement rather than treating it as a temporary or symbolic exercise.

He noted that nearly half of the world’s population under 30, and significantly higher percentages across Africa, the stakes are even higher for countries on African continent.

He said: “Youth engagement should not be seen as a project—it must be embedded at the heart of governance, financing, and development planning.”

The UN also called for increased investment in youth-driven innovation, noting that young Nigerians are already transforming sectors such as agriculture, technology, and the creative economy through ingenuity and entrepreneurship.

Youth Exclusion Could Derail Development Goals, UN Issues Urgent Warning

Continue Reading

News

Nigeria’s Skills Crisis Deepens as Government, Experts Push Urgent Overhaul of Technical Education

Published

on

Nigeria’s Skills Crisis Deepens as Government, Experts Push Urgent Overhaul of Technical Education

By: Michael Mike

Growing concerns over Nigeria’s widening skills gap took centre stage in Abuja on Wednesday, as education stakeholders warned that the country risks undermining its industrial ambitions without a radical overhaul of its technical training system.

At a high-level session of the BEAR III Programme convened by United Nations Educational, Scientific and Cultural Organisation (UNESCO), the Federal Ministry of Education Nigeria acknowledged that current training models are failing to keep pace with the rapidly evolving demands of industry—particularly in agro-processing, a sector seen as critical to job creation and economic diversification.

Director of Technology and Science Education, Mrs. Patricia Ogungbemi,, delivered a blunt assessment: Nigeria is producing graduates who are increasingly disconnected from the realities of modern workplaces.

While investments in infrastructure and technology have grown, she warned that the human capacity needed to drive those systems remains weak.

“There is a dangerous mismatch between what is taught and what is required,” she said. “Machines are evolving, industries are advancing, but the workforce is not keeping up at the same speed.”

Ogungbemi pointed to emerging trends such as automation, smart packaging, and sustainable production systems, noting that many Technical and Vocational Education and Training (TVET) institutions have yet to integrate these realities into their curricula.

She described the ongoing Labour Market Analysis (LMA) as a critical diagnostic tool, but stressed that data alone would not solve the problem without decisive policy action and sustained funding.

“What we are confronting is not just a training issue—it is a structural challenge that affects productivity, competitiveness, and national growth,” she added.

The warning comes amid rising youth unemployment and growing frustration among employers who say graduates often lack practical, job-ready skills.

Stakeholders at the event argued that unless Nigeria urgently retools its education system to prioritise hands-on, industry-driven learning, sectors like agro-processing—despite their vast potential—may struggle to absorb the millions entering the labour market each year.

Kano State Commissioner for Education, Ali Makoda, reinforced the urgency, describing work-based learning as a “non-negotiable pathway” to addressing the crisis.

According to him, states are beginning to recognise that traditional classroom models alone cannot solve unemployment challenges.

“We must embed learning within the workplace,” he said. “The future of education is not just in classrooms, but in factories, farms, and production lines.”

Makoda said Kano State is scaling up partnerships with industry players to ensure students gain real-world experience before graduation, aligning training with both national development goals and global standards.

Despite these commitments, participants acknowledged persistent obstacles, including underfunded institutions, outdated equipment, and weak collaboration between academia and industry.

They also stressed the need for stronger private sector involvement, arguing that employers must play a more active role in shaping curricula and offering apprenticeship opportunities.

With support from international partners, including the Government of the Republic of Korea, the BEAR III initiative is expected to drive reforms in skills development, particularly in agriculture-linked industries.

However, observers said the success of such programmes will ultimately depend on Nigeria’s willingness to translate policy discussions into concrete, system-wide change.

As deliberations continue, one message remains clear: without a skilled workforce aligned to industry needs, Nigeria’s economic aspirations may remain out of reach.

Nigeria’s Skills Crisis Deepens as Government, Experts Push Urgent Overhaul of Technical Education

Continue Reading

Trending

Verified by MonsterInsights