On Friday, the International Trade Union Confederation said the International Monetary Fund (IMF) was planning to release its annual World Economic Forum forecast next month.
The forecast shows the IMF is predicting growth of around 1% this year, with around half of that growth coming from the United States.
The organisation, which has been campaigning for stronger protection of environmental standards, said that this would lead to the loss of jobs in some sectors of the economy.
“This will also have a serious impact on the climate and on the jobs of people who are already living and working in extreme conditions,” the TUC’s executive director Frances O’Grady said.
“If the IMF and the other economic bodies don’t act quickly to address the impacts of climate change and its impacts on workers and communities, this could be the first major climate catastrophe in modern times.”
The climate crisis is the biggest global economic crisis since the Second World War and its impact will be felt for generations to come.
“We need the IMF to make sure that its forecasts are as accurate as possible so that it can make the right choices when it comes to climate protection, so that the economy is protected, jobs are created and poverty alleviated.”
“It’s time for the IMF, the World Bank and other global organisations to put their economic interests ahead of the environment,” she added.
The IMF is due to release a forecast of economic growth for the year ending in March 2018.
TUC chief Frances O: ‘Climate catastrophe will have a major impact on jobs in many sectors of economy’ However, the TUF said the IMF’s forecasts would not be based on data that is currently available.
Instead, it said the outlook was based on projections of the US economy in 2050, with a much lower growth rate in the US than in the rest of the world.
“It is a mistake to believe that this is an accurate forecast of the future,” Ms O’grady said, calling for the US government to “stop using data that has no basis in fact and instead provide data based on actual economic data”.
“The IMF has failed to provide an accurate projection of the global economy and the impact of climate disruption on the economy, particularly in the United Kingdom,” she said.TUC general secretary Frances O”Grady: ‘The IMF and other economic groups should put their financial interests ahead’ The TUC said the new forecast was based in part on US government forecasts of the 2020-2030 timeframe, which it said were not based on current economic data.
“A lot of people are not going to be able to pay for these services and these forecasts are going to take a long time to be factored in,” Ms E’Gracy said.
“It has to be very clear to the IMF that it is the United Nations and the World Economic Council who have an obligation to give them accurate forecasts.”
The TUCE said the organisation was “deeply concerned” about the IMF release.
“They need to do a better job of keeping their forecast data up to date, rather than releasing it on a Friday when the economy has already shown signs of a significant contraction,” TUC executive director, Frances O, said.
The TUV said the release of the IMF forecast was “extremely disappointing”.
“It will give the IMF the opportunity to make even more irresponsible predictions,” TUV’s general secretary, Eilidh Whiteford, said in a statement.
“Instead, we need the US to put its economic interests first, to start protecting the environment and jobs, and to protect the climate.”
The IMF’s new forecast is based on a projection that the US is expected to grow by only 1.3% this financial year, which would be a drop of more than 2.3 million jobs.
The forecast for the rest, or the next year, shows a much bigger reduction in US economic growth, with the US forecast of 2.6% growth for 2020, down from 2.8% in 2020.
The International Monetary Service, the IMF or both will not be named in the IMF report.