The United Nations considerably reduced global economy growth forecast for the coming two years.

Global economic growth started to decelerate on a broad front in mid-2011 and this slow growth is expected to continue into 2012 and 2013, says the report titled World Economic Situation and Prospects 2012.

The UN estimated growth of world gross product (WGP) at 2.8 per cent in 2011, and its baseline forecast projects growth of 2.6 per cent for 2012 and 3.2 per cent for 2013, which remains below the pre-crisis pace of global growth.

Developing countries and economies in transition are expected to continue to stoke the engine of the world economy, growing on average by 5.6 per cent in 2012 and 5.9 per cent in 2013 in the baseline outlook.

In China, growth slowed from 10.4 per cent in 2010 to 9.3 per cent in 2011 and is projected to slow further to below 9 per cent in 2012-2013. India’s economy is expected to expand by between 7.7 and 7.9 per cent in 2012-2013, down from 9.0 per cent in 2010.

The GDP growth in U.S. will make 1.5% next year and 2% in 2013. The GDP growth in EU states is forecasted to make 0.7 and 1.7% respectively.