Global Economy on Recessionary Path, UNCTAD Warns

The United Nations Conference on Trade and Development (UNCTAD) has issued a stark warning: the global economy is veering towards a recession, with growth potentially slowing to just 2.3% in 2025. This alarming forecast highlights the growing uncertainties and escalating trade tensions that threaten worldwide economic stability.

Trade Tensions and Policy Shocks Fuel Uncertainty

According to UNCTAD's latest report, the global economic outlook is increasingly clouded by the risk of policy shocks, financial volatility, and heightened uncertainty. The report emphasizes that recent escalations in trade wars, marked by new tariff measures, are disrupting supply chains and undermining predictability. "Trade policy uncertainty is at a historical high," the report states, noting the adverse effects on investment decisions and employment rates.

Diverging Growth Rates Across Major Economies

The report projects varied economic growth rates for key global players in 2025: the United States at 1.2%, the UK and EU at 1%, and China leading with an expected 4.4% growth. These figures underscore the uneven impact of current economic challenges across different regions.