UNCTAD forecasts global growth slowdown to 2.6 percent in 2026

UNCTAD has projected that global economic growth will slow from 2.9 percent in 2025 to 2.6 percent in 2026. In its report, "Trade and Development Foresights 2026: Global economy faces a geopolitical challenge," the organisation said geopolitical risks have become the primary source of instability in the world economy.

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The report says developing economies remain the most vulnerable to pressure from high energy, food and fertiliser prices. It also cites transport disruptions, market volatility and tightening financing conditions as persistent strains.

UNCTAD said global trade retained some momentum in early 2026, supported by artificial intelligence-related products. It added that growth in traditional sectors was more modest as pressures on global food systems increased and food security risks rose.

The organisation called for stronger international cooperation, better trade conditions, increased financial safeguards for developing economies and faster investment in renewable and clean energy. It said these steps are needed to improve resilience and reduce the impact of future shocks.

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