Global Economic Growth Falls Amid Trade Tensions

(MENAFN) In a recent announcement, the United Nations Conference on Trade and Development (UNCTAD) projected a slowdown in global economic expansion, estimating it will decelerate to 2.3 percent in 2025.

This decline is being attributed to an ongoing recession-like trend driven by intensifying trade disputes and a growing sense of unpredictability across markets.

UNCTAD emphasized that while "developing economies face risks and worsening external conditions," there are still glimmers of hope found in the increasing volume of South-South trade and the strengthening of regional economic partnerships, which present potential avenues for resilience and growth.

The announcement also underscored various escalating dangers, such as abrupt changes in trade policies, instability in financial markets, and heightened ambiguity—all of which threaten to undermine the global economic forecast.

The report observed that "trade policy uncertainty is at a historical high,” adding that this has led to postponed investment plans and a slowdown in employment expansion.

Although all countries are expected to feel the impact of slower growth, poorer nations are particularly at risk. Many of these states are confronting a "perfect storm" of adverse external financial pressures, unmanageable debt levels, and faltering internal economic momentum.

UNCTAD's findings draw attention to the significant risk these challenges pose to economic advancement, capital investment, and sustainable development—especially for countries already on fragile economic footing.

In response to rising trade frictions, the organization advocated for increased diplomatic engagement, cooperative policymaking, and a renewed commitment to both regional and international economic collaboration, leveraging pre-existing trade connections.

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