Moscow: The growth of the global economy is expected to slow down from 2.8% in 2024 to 2.3% in 2025 due to trade tensions and amid uncertainty, with developing countries being the most vulnerable, the UN Trade and Development (UNCTAD) said on Wednesday. “Global growth is expected to slow to 2.3 per cent in 2025, marking a shift towards a recessionary path. Subdued demand, trade policy shocks, financial turbulence and systemic uncertainty are intensifying pressures – especially for developing countries,” the UNCTAD said in its fresh Trade and Development Foresights report.

According to Namibia Press Agency, the report highlights that the anticipated slowdown is a cause for concern, particularly for developing nations lacking the economic resilience to weather such fluctuations. The report suggests that the combination of subdued demand and trade policy disruptions contributes significantly to the downward trend in global growth.

UNCTAD’s analysis points to financial turbulence and systemic uncertainty as additional factors exacerbating the economic challenges. The report underscores the need for policy interventions aimed at stabilizing trade relations and addressing the underlying causes of financial instability. The emphasis is on mitigating the adverse impacts on the most affected countries, particularly those with limited coping mechanisms.

The projected economic trajectory calls for a collaborative approach among nations to address the root causes of trade tensions and enhance resilience against economic shocks. UNCTAD urges policymakers to prioritize strategies that bolster global economic stability and safeguard the interests of vulnerable economies.