EU, US leading global economy to renewed recession: study

World economic growth has weakened considerably during 2012 and is expected to remain subdued in the coming two years, even falling to a renewed recession, says a new United Nations report, which calls for policy changes in the developed countries, especially in the US and Europe.

The global economy is expected to grow at 2.4 per cent in 2013 and 3.2 per cent in 2014, a significant downgrade from the UN's forecast of 2.7 per cent and 3.9 per cent, respectively half a year ago, according to the report, 'World Economic Situation and Prospects 2013,' the first chapter of which was published today.

''This pace of growth will be far from sufficient to overcome the continued jobs crisis that many countries are still facing,'' said a release on the report. ''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.''

The weaknesses in the major developed economies are at the root of the global economic slowdown, the report stresses.

Most of the developed economies, but particularly the US and those in Europe, are trapped in a ''vicious cycle of high unemployment, financial sector fragility, heightened sovereign risks, fiscal austerity and low growth,'' the report noted.

Several European economies and the euro zone as a whole are already in recession, and euro zone unemployment increased further to a record high of almost 12 per cent this year. Also, the US economy slowed significantly during 2012 and growth is expected to remain ''meagre'' at 1.7 per cent in 2013.