Geneva: Amid recessionary trends linked to escalating trade tensions and uncertainty, global economic growth is expected to slow to 2.3% in 2025, as revealed in a statement by the UN Conference on Trade and Development (UNCTAD).

According to Anadolu Agency, the statement from UNCTAD underscores the challenges faced by developing economies, emphasizing the risks and deteriorating external conditions. However, it notes opportunities in growing South-South trade and greater regional economic integration. The statement highlights mounting threats like trade policy shocks, financial volatility, and a rise in uncertainty that could undermine the global economic outlook.

The report points out that trade policy uncertainty has reached a historical high, which is already manifesting in delayed investment decisions and reduced hiring. While the slowdown in growth will impact all nations, many low-income countries face a "perfect storm" of worsening external financial conditions, unsustainable debt, and weakening domestic growth.

UNCTAD's report stresses the real threat to economic growth, investment, and development progress, especially for the most vulnerable economies. As trade tensions grow, the agency urges dialogue and negotiation, along with stronger regional and global policy coordination, building on existing trade and economic ties. The report concludes that coordinated action will be essential to restore confidence and keep development on track.