The United Nations Conference on Trade and Development (UNCTAD) said on Wednesday that the global economy is on a "recessionary trajectory" and its growth could slow to 2.3% in 2025.
UNCTAD warned in a new report that global growth is affected by constant uncertainty and intensifying trade tensions, placing it "on a recessionary path." Rising risk of policy shocks, financial volatility and higher uncertainty all impact the global outlook. Commenting on recent trade war escalations, UNCTAD stated that the newest tariff measures are compromising supply chains and predictability. "Trade policy uncertainty is at a historical high," the report notes, "and this is already translating into delayed investment decisions and reduced hiring."
According to the report, the United States predicted economic growth for 2025 is 1.2%, both the UK and the EU 1%, while China's economy is expected to jump 4.4%.
