Global Economic Growth Faces Downward Pressure

The United Nations Conference on Trade and Development (UNCTAD) has issued a stark warning: the global economy is veering towards a "recessionary trajectory," with growth potentially decelerating to 2.3% in 2025. This alarming forecast underscores the mounting challenges facing worldwide economic stability.

Trade Tensions and Uncertainty Take Their Toll

In its latest report, UNCTAD highlights how persistent uncertainty and escalating trade conflicts are steering the global economy onto a "recessionary path." The organization points to the increasing likelihood of policy shocks, financial instability, and heightened uncertainty as key factors dampening the global economic outlook.

"Trade policy uncertainty is at a historical high," the report emphasizes, noting that this climate is already causing delays in investment decisions and a slowdown in hiring practices. The recent surge in tariff measures is further exacerbating the situation, disrupting supply chains and undermining predictability.

Projected Growth Rates Highlight Diverging Fortunes

The report sheds light on the uneven economic prospects across major economies. The United States is anticipated to see a growth rate of 1.2% in 2025, with both the UK and the EU trailing slightly at 1%. In contrast, China's economy is expected to outpace these figures significantly, with a projected growth rate of 4.4%.