The United Nations expects a slowdown in global economic growth.

 

United Nations building in New York

The United Nations expects a slowdown in global economic growth.

The United Nations has forecast a slowdown in global economic growth this year and next, citing the impact of increased US tariffs and rising trade tensions.

UN economists also pointed to the volatile geopolitical landscape and the threats of rising production costs, supply chain disruptions, and financial turmoil.

"There is a lot of uncertainty on the horizon these days," said Shantanu Mukherjee, Director of the Division for Economic Analysis and Policy at the UN Department of Economic and Social Affairs.

“It has been a difficult time for the global economy,” he told reporters at the launch of the mid-year forecast. “In January of this year, we were expecting two years of stable—albeit subpar—growth. Since then, expectations have been eroded, accompanied by significant volatility across the board.”

The UN currently projects global economic growth of 2.4 percent this year and 2.5 percent next year—a 0.4 percentage point decrease each year from its January forecast. Last year, the global economy grew by 2.9 percent.

Mukherjee said the slowdown is affecting most countries and regions, but among the hardest hit are the poorest and least developed countries, whose growth forecasts have been cut from 4.6 percent to just 4.1 percent since January.

The world’s developed and developing countries are also expected to suffer, according to the UN report.