World economic growth to slow to 2.6% in 2026, UN trade body says
UNCTAD said trade in goods and services will expand 4% as higher energy prices and AI-linked market risks weigh on growth.
- On Friday, UNCTAD reported that global economic growth will likely slow to 2.6% in 2026, down from 2.9% last year, as the global economy faces significant headwinds.
- The slowdown stems primarily from an energy shock linked to the ongoing crisis in the Middle East, which continues to challenge global economic stability and market performance.
- Asia is projected to contribute 59% of global economic growth in 2026, with India expanding at 7.3%, China by 4.5%, and Indonesia by 5.2% as AI-related products drive merchandise trade.
- Trade faces headwinds from Trump tariffs, UNCTAD noted, while AI-related trade expands despite rising financial stability risks as markets become overly exposed to a few companies.
- The International Monetary Fund remains slightly more optimistic with a 3% growth forecast, flagging risks including the Iran war and trade fragmentation, while The World Bank projects potential declines with worst-case scenario at 1.3%.
38 Articles
38 Articles
The global economy is set to slow to 2.6% in 2026, down from 2.9% in 2025, as high energy prices and the Middle East conflict continue to weigh on economic activity, the United Nations Conference on Trade and Development (UNCTAD) said in its Trade and Development Report 2026, published today, 9 October. Despite the slowdown, international trade is showing resilience. Global trade in goods and services is expected to grow by around 4% in real ter…
Today, the United Nations Conference on Trade and Development (UNCTAD) weighted a slowdown in world economic growth to 2.6% this year in 2026, down from 2.9% last year.
World growth to slow to 2.6% in 2026 as Middle East crisis hits global economy
UNCTAD said global growth could slow to 2.6% in 2026 as the Middle East crisis drives an energy shock. The report also highlighted Asia's growth role, shifting trade flows and AI-linked market risks.
World economic growth to slow to 2.6% in 2026, UN trade body says
October 11, 2026.- The expected growth of the world economy at the close of 2026 is 2.6 per cent, compared to 2.9 per cent last year, even though trade in goods and services is expected to expand by about four per cent, said Friday 9th the flagship report on trade in goods and services.
Developing economies face sharper slowdown as growth slips to 4% in 2026
United Nations Trade and Development (UNCTAD) has warned of a sharper slowdown in the global economy in its Trade and Development Report 2026. Global growth is projected to ease to 2.6% in 2026, down from 2.9% last year, while growth across developing economies is expected to decelerate to 4.0% from 4.7% in 2025. The report […]
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