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Global Growth Slowdown Threatens Recovery Amid Trade and Geopolitical Strains

Global Growth Slowdown Threatens Recovery Amid Trade and Geopolitical Strains

Published:
2026-01-08 20:59:02
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The UN forecasts global economic growth will dip to 2.7% in 2026, down from 2.8% in 2025, with a modest rebound to 2.9% in 2027. These figures remain well below the pre-pandemic decade average of 3.2%, signaling persistent structural weaknesses.

Trade tensions loom large as the full impact of Trump-era tariffs begins to crystallize. International trade growth—3.8% in 2025—is projected to plummet to 2.2% this year. 'A combination of economic, geopolitical and technological tensions is reshaping the global landscape,' warns UN Secretary-General António Guterres.

While the US bucks the trend with 2% growth fueled by expansionary policies, allies face headwinds: the EU slows to 1.3%, Japan to 0.9%. Armed conflicts and volatile commodity markets further cloud the outlook.

|Square

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