The United Nations (UN) Conference and Development Conference (UNCTAD) predicted that the global economy was in a recessionist course due to increasing trade tensions and ongoing uncertainties and that economic growth slowed down to 2.3 percent this year.
UNCTAD published its report titled “Trade and Development Foreigns 2025: Uncertainty Rarvees Global Economic Expectations”.
Accordingly, global economic growth is expected to decline to 2.3 percent this year, while this growth rate puts the world economy on a recession path.
Trade policy shocks, financial fluctuations and the increase in uncertainties that disrupt the global appearance trigger the slowdown in economic growth.
Increasing tensions affect global trade, while recent tariff measures weaken predictability by disrupting supply chains.
According to the report, the uncertainty in trade policies has reached a level of uncertainty, which has already led to the postponement of investment decisions and a decrease in recruitment.
While the slowdown in the global economy is expected to affect all countries, there are higher risks especially for developing countries and the most fragile economies.
The risk of encountering a “excellent storm” is increasing due to the worsening external financial conditions, sustainable debt levels and weakening economic growth of many low -income countries.
In this context, UNCTAD calls more powerful regions and global policy coordination, as well as calls for dialogue and negotiation.
According to UNCTAD data, the global economy grew by 2.8 percent last year.
