A. M. The global economy is heading for a significant slowdown, with projected growth of only 2.3% in 2025, according to a new report from the United Nations Conference on Trade and Development (UNCTAD). The report, titled “Trade and Development Outlook 2025 – Under Pressure,” notes that the deterioration in global economic conditions is closely linked to rising trade tensions and geopolitical uncertainty.
UNCTAD warns that the combination of tariff measures, supply chain disruptions, and financial volatility is undermining investor confidence and reducing growth expectations. The increasing unpredictability of trade policy, the report highlights, is pushing many companies to postpone investments and limit hiring, thus hampering the global recovery.
Developing economies face a particularly challenging environment. Domestic economic fragility is compounded by negative external effects such as tightening financial conditions and weakening international trade. However, UNCTAD also highlights emerging opportunities, such as the growth of South-South trade and greater regional economic integration.
To mitigate these risks, the organization urgently calls for greater international coordination of economic policies. Concerted efforts are needed to stabilize financial markets, ensure clearer trade rules, and strengthen regional networks as buffers against external shocks.
The report concludes with a clear warning: without collective action and long-term strategies, the global economic system could face a prolonged era of low growth, marked by fragmentation and greater inequality between countries.
