UNCTAD
UNCTAD Predicts Global Growth to Slow to 2.6 Percent in 2026
Geneva: The United Nations Conference on Trade and Development (UNCTAD) has warned that geopolitical risks have become the primary source of instability facing the global economy, forecasting a slowdown in global growth from 2.9 percent in 2025 to 2.6 percent in 2026.
In its report titled “Trade and Development Outlook 2026: A Global Economy Under Geopolitical Challenge,” UNCTAD said the global economy is facing increasing pressure from rising energy prices, transport disruptions, market volatility and growing demand for safe-haven assets.
The report noted that developing economies are the most affected by these challenges due to higher fuel, food and fertiliser costs, currency pressures, tighter financing conditions and declining investor confidence.
UNCTAD stated that global trade in goods remained relatively resilient during the early months of 2026, supported mainly by products linked to artificial intelligence technologies, while growth in traditional and commodity-based sectors remained limited.
The organisation also warned of increasing pressure on global food systems caused by rising energy and fertiliser costs, which are contributing to higher food inflation and placing additional burdens on governments already facing elevated debt service costs.
UNCTAD called for stronger international cooperation, improved trade conditions, enhanced financial guarantees for developing economies and accelerated investment in affordable clean energy to support stable global growth and reduce future economic shocks.
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