U.N. Secretary-General Antonio Guterres said Monday that the world is facing an unprecedented “tidal wave” of job losses, which is causing “unprecedented” damage to the global economy.
The world’s economic output is expected to shrink by about 4 percent this year, a forecast from the U.K.’s Office for Budget Responsibility (OBR) and the International Monetary Fund (IMF) suggests.
Guterre, who is also the UN’s special envoy for climate change, said at a press conference in New York that job losses in the global manufacturing sector are threatening the world’s financial system.
He added that he hopes the global financial system can withstand the impact of the wave of job loss.
“The global financial sector is not in a position to sustain itself in the face of such a severe and widespread shock,” Guterret said.
“This will be a global financial crisis.”
Guterras statement came as President Donald Trump took to Twitter to express his disappointment in Guterrezs assessment of the global economic outlook.
“If the numbers from the United Nations are right, U.W. manufacturing jobs are at record lows, and we are in the midst of a historic global recession.
I am so disappointed!” the president wrote.
“Trump, you know, I have to tell you, it’s just not fair.
You’re not seeing what we’re seeing.”
Trump, however, later tweeted that he would continue to push the administration to create new jobs in the U,S.
“I think it will be very good,” Trump said of the UN report.
In a statement, Guterrer said that his team has worked to build a “deep understanding” of the causes and consequences of the economic downturn.
“We have identified a number of key drivers of this economic upheaval,” Gutersaid.
“These include a combination of factors including low oil prices, a drop in investment, a shift from global trade to domestic markets, and a slowdown in growth in emerging markets,” he said.
The UN says the world economy is on track to contract by 1.8 percent this fiscal year, down from the previous estimate of 2.2 percent last year.
The OBR and IMF forecasts the global contraction to be about 1.5 percent this coming year, which would be the worst for nearly four decades.
In the first quarter of 2019, global employment plunged by 3.5 million, according to the latest data from the Organisation for Economic Co-operation and Development (OECD), which tracks data on labor markets.
The OECD expects global unemployment to reach 10.1 percent this summer, up from 9.1 in June and 8.3 in May.
Economists have been warning of a possible economic collapse in the months ahead.
The International Monetary Board on Monday warned that the global recovery is at risk.
“There are very few signs of recovery on the horizon, and the outlook for the next year and a half is very uncertain,” it said in a statement.