Global economic growth could slow to 2.3% as trade tensions and uncertainty drive a recessionary trend, the UN Trade and Development (UNCTAD) agency said on Wednesday.
"Global growth is projected to slow to 2.3% in 2025, placing the world economy on a recessionary path," UNCTAD said, citing a report it published on the trade and development outlook for this year. The global economy grew 2.8% in 2024, it said.
"This is a significant deceleration compared to the average annual growth rates registered in the pre-pandemic period, which itself was a period of subdued growth globally," the report said.
UNCTAD said fears of recession in the US were growing as tariff concerns added to investor anxiety. The UN agency had urged Trump's administration on Monday to exclude the poorest and smallest economies from reciprocal tariffs because it "would have minimal impact on United States trade policy objectives."